I have looked over some of the financial changes I will have to make this year and I have decided to change my debt snowball strategy. I was originally going with the highest interest method but I will have to now use the lowest balance method.

You may remember that I recently got my highest interest rate dropped on one of my credit cards. I was using another 0% interest card to pay off the other cards and yesterday I went in to do a balance transfer and get an email back saying the transfer could not be completed because the offer had expired.

I called customer service and asked about this and was told that the email was an error. I would still be able to do the transfer over the phone but that at the end of the month I would not be able to make any more balance transfers even if I brought the balance down.

It was not an issue of available credit…..just an issue of them not offering any more balance transfers until they ran a new promotion. Huh?

Still makes no sense to me…..but at least the balance will remain at 0% interest and there were no balance transfer fees.

This card has very low minimum payments so I will let the balance here ride out on the 0% interest for now and slap some money on my lowest balance account. This account happens to have the highest monthly payment because it is a loan account, although it has one of the middle interest rates.

I am going with the lowest balance method now because I have already grown accustomed to paying the interest anyway and I since I got one rate lowered I think I would rather have the psychological satisfaction of having one small debt taken care of completely so that I can feel a sense of accomplishment.

Plus, since I was paying such a hefty part of my monthly payments on this one account I will now have that much more money to throw at the other debts.

So my snowball tactic is to beat down that smaller balance first.