Quote:
Originally Posted by Snake Doctor
It seems like a big deal, but this is money that isn't being spent anyways, it's just available credit.
Banks aren't going to reduce credit lines below what you already owe them, so this is just "theoretical money" anyways.
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That theoretical money can have a profound effect on someone's psychology toward their finances. If you have less of a safety cushion, you're probably going to be safer with your money.
And banks will reduce credit lines below what you owe them. It happens all the time, even before this credit crisis. You simply can't use available credit until your card is paid down. It would be silly for them to cut the credit lines of those who can pay their cards while leaving those who can't unscathed.