Card issuers are cutting credit limits; here's what to do if they cut yours

Credit expert Gerri Detweiler discusses a trend where card issuers have been re-assessing risk and reducing the credit limits for consumers — even those with good credit scores — and why those moves are a symptom of the economy and the appetite for risk, rather than a reflection of you and your financial habits. Detweiler — who recently wrote about this issue for CardRates.com — says that limit cuts don't just reduce financing options, but it can impact credit scores and drop them, even if the consumer is not considered high-risk. Consumers get notices about limit cuts, but Detweiler says they are often missed; she discusses the moves consumers can make to avoid, forestall or minimize the issue, and how best to handle the situation. Carrie Joy Grimes, founder of WorkMoney, discusses her new book, "The Joy of Money: How to Do More With and Feel Better About Your Money - No Matter How Much You Have," and how people confuse the math of money and the number they need to reach, rather than recognizing that it's how they feel about the money, choices and financial security that determine if they feel truly wealthy. She notes that most people struggle to get out of their own way when it comes to finances, blocking their own path to happiness because they are judging it on the scale of neighbors or riches, rather than on the quality of life and the control they have over their choices. Plus, Chuck talks about his long-time habit of writing down the reasons why he is buying an investment before making a purchase, and what he was thinking when he reviewed some of that paperwork during a recent clean-out of some files. It's a reminder that investments can do their job but that doesn't always make them right when your needs and time horizons change, and then how you decide whether to stay the course or change things up.