SteveTheHawk

Expect Retail Bankruptcies in January

I don't carry a balance on my credit cards, and the credit limit on one of my cards was just raised, for unknown reasons. I have had no credit limit reductions and it seems that my line of lenders is trying their best to get me to borrow and spend. Even my HELOC vendor is in regular contact and is apparently concerned that I haven't borrowed any money in some time.

Our household is not overly affluent, but we do have top-notch credit scores. From my small corner of the world it seems then that many who are seeing reduced access to credit probably need that reduction.

My wife and I are blessed with jobs (and pensions) and I truly feel for those who through no fault of their own are in poor financial condition. The fact is though that many people have been riding the fantasy credit bus for too long. The retailers and lenders have been there for them, driving the buses. That reality is coming home to roost is not a surprise. Retailers are going to feel the reality pinch for some time. The abuse of credit has created a surplus of retailers. Certainly, some will close but the strong will survive to sell another day. In the meantime, we will get along just fine without the large flat-screen TV.