As you may have noticed, I’m a huge proponent of the debt snowball. But something happened today when I sat down to pay my Discover card today. I noticed that my available credit was $-7. Negative seven dollars.

Last month my credit line was $2600. And after paying $1,762.85 to them per my plan, they dropped my limit to $800, which is BELOW my new balance of $807!

I’m highly annoyed, so I started doing what any good blogger would do and Googled the hell out of this. Apparently many people are getting screwed by having their credit limits reduced. Look at all of the comments on that last link. SO MANY people are getting screwed because of this. I must find a way to punch these bastards in their faces.

Anyway, know that this can happen to you while doing the debt snowball. In my case, I’ll be paying the card off ASAP, so this won’t screw me financially, BUT it WILL reduce my wife’s available credit, which I’ve read is 1/3 of the FICO score. Not a problem for me since my FICO score is good, but this is my wife’s card and hers isn’t the greatest. *SIGH* I shall call them and give them a stern bitching to.

Be careful out there fellow financial adventurers!

-MG