When I totaled up the debt I had originally included the mortgage, but we are definitely not at point where we can tackle that debt so in an effort to delude myself of reality I decided to focus on EVERY DEBT except the house.

CAR (really an ultra-dorky minivan) – $8,555 @ 10.5% interest

STUDENT LOAN – $23,551 @ 4.875% interest

PERSONAL LOAN – $4,900 @ 0% interest

CREDIT CARDS – $11,216 @ varies 9%-23% interest

Total = $48,222

While it certainly feels more manageable if you don’t factor in the mortgage -  it’s still a lot of debt.  In the past I would have looked for a quick fix for this.   Interest rates on Home Refinances are pretty low right now.  Luckily we made one or two smart financial moves in our past and have a lot equity in our house.  Why not do a cash-out refi, roll up all this debt into the house with a lower interest rate and have only one payment a month?

According to the debt snowball calculator if we keep plodding along and a keep up with the current payments to all of our debt (and snowball correctly) it will take us 5 years and cost us $9,600 in interest to be debt free.  Ugh!

What if we consolidated our debt into a mortgage at 5.5% fixed rate with a 25 year term.  In that scenario the amount of  interest alone would cost:

$40,573!

And if we did consolidate, all of our debt would be “secured debt”.  We could lose everything in the event of a financial disaster.

Some of the credit cards have rates over 20% is there a better way to pay these off that I’m missing?

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