You know what is awesome about paying off all your credit cards? Your credit score goes up. You know what is great about your credit score going up? You qualify for better rates on loans.
We have been switching banks and I logged into our Prosper.com account to change our bank account. I have a loan through them that paid part of a credit card off and paid for our honeymoon. Anyway, I logged on and I was SHOCKED! I totally forgot about the interest rate on that loan… At the time it was better than our credit card with the highest balance, which had an interest rate of 29.99%. But this loan was 22.87%. HUGE! But we had just paid off all our cards and our credit score had gone up 100 points since April of last year. So I decided to see what the interest rate would be on a loan if I applied now.
8.74%. That is a big difference! So I applied for a new loan that would have enough to pay off our old loan. It got funded in 14 minutes! Woot! And our monthly payments go from $270 a month to $130. Now we will still pay $270 a month to pay off the loan sooner, but it will be so nice not having so much of our payment go toward interest! Super excited for this!
Also, I started transferring money from our saving account so we can pay our taxes. That hurt… $1500 is hard to see leave. But it will be good to get that out of the way.