Natural disasters and credit cards

iVillage Member
Registered: 01-25-2006
Natural disasters and credit cards
3
Sun, 08-03-2008 - 12:10pm

I wanted to share some information for those of you that might be on the fence on maintaining credit card accounts after debt elimination. Many families choose to close all accounts and never use credit again. That is one legitimate choice. I personally am not interested in closing all credit but am considering how much to reduce my available credit and I was thinking of something fairly extreme like maybe only keeping my 2 oldest cards and dropping their combined credit to something like $7-10k. A good friend of mine recently was impacted significantly by a tornado. His experience has convinced me to consider increasing that by 3-4x. He was well insured but wound up fronting nearly $15k in expenses until his insurance claim was paid. I do not have my full 6 mos. of efund built yet and it will be a while and even if I did have it, I think I would rather 'float' that type of expense that is really not my expense that I am assured of reimbursement eventually.

Thought I'd throw that out for consideration...

Peg

iVillage Member
Registered: 03-17-2003
Sun, 08-03-2008 - 1:02pm
Excellent post Peg.
iVillage Member
Registered: 11-17-2007
Sun, 08-03-2008 - 1:09pm

I am

iVillage Member
Registered: 06-18-2004
Sun, 08-03-2008 - 1:36pm

Mary Ann, what makes you think that would be silly.