Eric's Credit Community

I am 52 years old, married for 20 years with 2 children. I accepted a new job one year ago that has increased my income by 30%. In addition, I began to receive a supervisory salary that will make my total income over $105,000 in 2007.
My income increased from $80,000 to $105,000 this year.
The change in companies required moving my client base which interrupted my 2006 income. My 2006 taxable income was $80,000. This impacted my credit score as I ran up my credit card dept to fund the transition. 
The public notice item on my credit report is an error that can not be erased, so I am told. The item represents a $250 insurance surcharge that the NJ Division of Motor Vehicles (DMV) tacked on to my property for a speeding (35 MPH in a 25 MPH zone) ticket that was being contested; I won the case. Latter I learned that DMV had erroneously placed and then removed a lien, without my knowledge. DMV provided document No. 605004 that confirmed that the driver?s surcharge was being disputed in court; no hold was placed on surcharge account so it went into judgment #DJ31862104.  Judgment now satisfied. The credit bureau was given this document but determined that the event, although erroneous, is public knowledge and that they have the right to list it.
I'd like to pay off the loans listed below to cut down on my monthly expenses and pay lower interest rate than the current credit cards. I WILL PAY
$8,000 ? Credit Cards ? Saving $430 per month
$2,000 ? Nissan Motors ? Saving $325 per month
This will lower my monthly payments on loans by $755 and will leave me sufficient funds to pay back my Prosper loan.
MONTHLY:
Net income after payroll deductions from all sources: $7,420
Spouse's Income: $3,300
Total monthly family Income $10,720
Mortgage: $2,100
Gas & Electricity: $360
Water: $45
Car Insurance and Operating Expenses: $560
Food: $500
House Taxes $ Insurance: $589
Phones & Internet: $265
Other $100
Loans that won't be paid off with my Prosper loan: $1888 
Total Monthly Expenses: $6,407. I will have $4,313 left to make the payments on my Prosper loan.