The fact is, our economy is reliant on consumption and for years, consumption has gone up faster than incomes.

"Just as Americans grow more reliant on credit cards to help pay monthly bills, they're being hit with a one-two punch: Card companies are reducing borrowing limits for tens of thousands of consumers, which then can lead to lower credit scores.

"Such moves come as consumers are increasingly using their credit cards as a source of liquidity, especially since it's becoming harder to tap their home equity as much to pay for everything from renovations to vacations to trips to the mall. As the housing and mortgage markets have collapsed, lenders have also reduced the limits on what are known as home equity lines of credit, or HELOCs."

What is the solution? Budget so you never go broke.

Source: By Ideal Investment Corner http://idealinvestment.blogspot.com/