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Refinancing a mortgage...consolidating debt. Advice?


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So I've found myself in some credit card debt. I owe about $7,000 total on a few different credit cards. It's stressing me out mainly because it's split up--having to make sure that all of these multiple cards get paid at their different dates, etc.


I have a condo that I bought about 3 years ago at a crappy fixed mortgage rate, 6.5, for 30 years. I bought the condo for $59,000 and I put down a $32,000 down payment. My current balance is about $27,800, after 3 years(originally $29,000 even). In the three years I've lived here, the value of the units in this complex has risen because of a research facility that has been built close by. The condos, which are all identical, are now selling from $68,000-77,000.


I want to refinance my condo to a lower rate(I can get about 4.8 now), and cash out the $7,000 to pay off all my cards--which would put my total mortgage balance at about $35,000 instead of the $27,800. Because of the lower rate, my monthly mortgage payment would only rise by like $15 a month. And I figure I can close the card accounts, keep one card for emergencies, and put the money I would have been putting on the cards every month on the mortgage. If I put even a small amount extra, like $200 a month, every month, just on the principal--I'd have the new total paid off in 8 years instead of 30. I'd have no more card bills, it'd take the stress off me **as long as I don't run up more card bills**. But I think I can manage that.


What are other people's thoughts on this??? I want to think it through. I really only make about $22,000 a year and the cards are sort of killing me here. Thoughts?

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I want to refinance my condo to a lower rate(I can get about 4.8 now), and cash out the $7,000 to pay off all my cards--


I've spoken to many financial advisers over the years and that, my friend, is your best bet. The key is to consolidate all your debts to the lowest interest rate possible. It's as simple as that. Go for it!

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I think that is a good idea. You still would have 50% equity in your condo and your interest would become tax deducible.


Just make sure you resist the tempation to run up those credit cards again once they are paid off. That got a lot of people in trouble over the past several years and many of them are really suffering now that the housing prices have collapsed.

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