Is it REALLY paid off?
So we learned a valuable lesson this week. I will start by giving this advice: In financial matters, DON'T LET YOUR GUARD DOWN!!! Yes, the all caps are a bit dramatic, but with good reason. I'll explain.
It all started with our first big financial victory. When we first began Project Money, we were able to come up with a plan that allowed us to pay off one of our credit cards immediately. We were so excited about this that it was mentioned in our second blog as part of our victories list. When we saw those zeroes, we pretty much washed our hands and moved on to the next challenge. Big mistake!
When we paid off that card, we did so within a billing cycle where the interest on that balance had not been applied yet. If it wasn't for Money Minder showing a balance of $2.48, there's a good chance we would have missed it all together. Forget the late fees that would have incurred! We would have a ding on our otherwise good credit for $2.48! Thank you Money Minder and thank you Coach Rachel for catching it!
The lesson really is to make sure you check your bills EVERY month. Especially when you think they are paid off. Yes, this is common sense mostly. But confidence can make one careless. A couple of minutes can save you a couple of years of fixing your credit.
(Moriah's disclaimer: My husband tends to be over dramatic. While one late payment may not ruin your credit for years, the point is why pay more than you have to? Keep an eye on those statements.)