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615 - Your Credit Limit Is TOO HIGH (Here's Why That's a Problem)

615 - Your Credit Limit Is TOO HIGH (Here's Why That's a Problem)

Author: Doug Hoyes June 18, 2026 Duration: 29:52
Debt Free in 30
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Is your credit limit too high? Learn how to safely request a lower credit limit to manage your personal finances more effectively. Most financial advice focuses on getting more credit, but having too much available can be a liability for some borrowers. This video explains why you might want to reduce your total credit limit and the specific steps required to contact your bank to make this adjustment. We cover the potential impact on your credit score and the practical reasons for keeping your credit card management simple. Understanding how your bank views a request to lower your credit limit is essential for maintaining control over your debt. By the end of this video, you will know exactly how to handle your credit limit if you decide it is simply too high. Subscribe for weekly credit card management breakdowns, and comment below if you have ever had to ask a bank to reduce your borrowing power.

00:00 Intro

00:19 Case Study - Client example of Bank Giving More Than Asked For

01:28 How Do Banks Decide Your Credit Limit

04:50 Debtasized & Brief Credit Card History

07:08 How People Very Easily Become Over Extended with Credit

09:28 What is Lifestyle Inflation

10:50 When High Credit Limits Are Actually Useful

13:01 High Credit Limit Risks & Downsides

16:08 Practical Advice on Managing High Credit Limits

20:28 Implications of Lowering Credit Limits

22:15 Keeping Up With Payments On Lines Of Credit

24:23 Dos and Don'ts of Using Credit

Related Links:

Debtasized Documentary:    • DEBTASIZED -  How Our Reliance On Credit L...  

Banks Are Not Your Friends - Here's Why    • Banks Aren't Your Friends - Here's Why  

FREE How To Budget Course: https://courses.hoyes.com/courses/how...

Debt Free Digest Monthly E-Newsletter Sign Up Here https://hoyes.tips/debt-free-digest-s...

Debt Repayment & Consumer Proposal Calculator https://hoyes.tips/repayment-calculat...

Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts    / @hoyesmichalos  

Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed. 


Doug Hoyes sits down each week with a different specialist to untangle the complicated feelings and hard numbers around owing money. The conversations in Debt Free in 30 move beyond simple scare tactics or dry theory, focusing instead on actionable strategies for managing debt, rebuilding savings, and making informed investing choices. You’ll hear from trustees, financial planners, and counselors who explain concepts in plain language, stripping away the industry jargon that often leaves people feeling overwhelmed. Whether it’s navigating a consumer proposal, understanding credit scores, or starting to invest with a tight budget, this podcast provides a clear-eyed look at the steps toward financial stability. Doug’s approach is grounded and pragmatic, reflecting his deep expertise in the field, making each episode feel like a direct consultation with a knowledgeable guide. Tuning in regularly offers a consistent source of demystified advice, turning what can be a stressful topic into a manageable process. It’s that blend of expert insight and relatable conversation that defines this particular personal finance podcast.
Author: Language: English Episodes: 50

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Debt Free in 30
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