So since the Fed has dropped interest rates, I’ve been wondering when mine was going to drop – my credit card is currently Prime + 3.9% (8.9%).

According to the terms of my card, the rules are as follows:

“The APR (other than the Introductory APR) is a variable rate determined monthly by adding a Margin of 1.75 to 12.9 (7.75 to 18.9 if the Delinquency APR applies) to the Prime Rate published in The Wall Street Journal on the first business day after the 15th day of the prior month. “

Translated into English, this means that the rate will adjust on November 1 to the prime rate published on October 15th. A quick look into www.federalreserve.gov tells me that on October 15th – the prime rate was 4.5. This means that my CC rate will be 8.4% – not as much different as I thought it would be.

I would tell you that it’s going to save me some money, but the truth is that I hold no balances on this card. I was kinda hoping it would drop below 7%, in which case I could transfer the balance of my car loan to consolidate and save money. (One less thing to keep track of.)

However, I’m also dilligently trying to bump my credit scores. With the balance transfer soup that has recently happened, the updates in my credit score should show up within the next week and I’m thinking that I’m going to get atleast a 10 point jump on all of them. Come December 4th, I’m elegible to call USAA again about a rate reduction, and I’m hoping this will put me in the Prime +1.75% category. That would be 6.25% – which would definately be below 7%.

Still, with my current debt snowball, I only expect to have that loan until it’s paid off in February.

Just updated my progress bars…. I’m $600 away from meeting my USAA Amex goal -86% finished. This includes current charges to my CC’s – which rank about $500 this month. I would be almost done, but….

Anyway, very excited about being finally finished with it. Since this is my current spending credit card, it has shown me a lot on spending control. With my bonus this month, I put $1500 of it toward this debt. With other expenses that came up (speeding ticket, annual homeowners warranty, and car tab renewels), I think I’ve done reasonably well. There’s still about $600 left over until I get paid on Tuesday, but I’m holding that just incase I need to pay part of the fees to break our apartment lease. 

Still – if I don’t – I’ve got $600 to pay off that bill and another $500 to put toward the next one. This snowballing effect has been the most freeing feeling anyone can ever do with their money. They’re right – it helps you pay off big balances faster too, and now that the Amex debt is under 10K, the motivation is huge to eliminate that one too…. as quickly as possible. 

May 6th is my Tax Stimulus payment – and that $600 is 100% going toward my snowball.