Traditional wisdom suggests that saving money while in debt is a bad idea: you pay hundreds of times more in finance charges on money you owe than you would get in interest on money you save. Under this scenario, your "safety net", at least until you are debt-free, would be the credit lines you are clearing out. However, in a response to a Lifehacker comment I made outlining this traditional wisdom, someone replied that given the financial crisis, companies could then lower your credit limit, regardless of cause, killing your safety net. Given this, is the traditional wisdom now wrong? [more inside]
posted by WCityMike on Oct 13, 2008 - 19 answers

How many credit cards should I have and what should my limits be for the best possible credit score? [more inside]
posted by amfea on Nov 29, 2007 - 7 answers