Dave Ramsey explains why you should not roll credit card debt into mortgage

<strong>Dear Dave,</strong>
<strong>I owe $98,000 on my home, and Iím thinking about doing a refinance. I also make about $75,000 a year, and I have $10,000 in credit card debt, plus a $30,000 home equity line of credit. Should I roll my credit card debt into the new mortgage?</strong>

<strong>Dave Says:</strong> I think a better plan would be to simply pay off your debt using your $75,000 income. Youíre making good money, so thereís no reason to unnecessarily tack additional debt onto a new mortgage. You may have to roll the home equity line of credit into the refinance just to get rid of it and get a clean title for the new mortgage holder. But donít refinance stuff youíve already bought on credit cards over the length of a mortgage. And make sure you refinance to a 15-year, fixed-rate note. Thereís no reason to do a 20- or 30-year mortgage, because you have a good income and can easily handle this situation. Just get on a budget, save some money, and you can rebound and get things under control in no time!
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