Ok, I'm probably late to the party, BUT...
THERE'S NO NEED TO RESIZE THE COLUMN IN YOUR CASE!
Postgres, unlike some other databases, is smart enough to only use just enough space to fit the string (even using compression for longer strings), so even if your column is declared as VARCHAR(255) - if you store 40-character strings in the column, the space usage will be 40 bytes + 1 byte of overhead.
The storage requirement for a short string (up to 126 bytes) is 1 byte plus the actual string, which includes the space padding in the case of character. Longer strings have 4 bytes of overhead instead of 1. Long strings are compressed by the system automatically, so the physical requirement on disk might be less. Very long values are also stored in background tables so that they do not interfere with rapid access to shorter column values.
(http://www.postgresql.org/docs/9.0/interactive/datatype-character.html)
The size specification in VARCHAR is only used to check the size of the values which are inserted, it does not affect the disk layout. In fact, VARCHAR and TEXT fields are stored in the same way in Postgres.