Debt Problems

is it a good idea to consolidate your debts?

I have a car payment and a personal loan payment, im in the process of buying a house and im thinking on consolidating all my debts including the mortage payment, is it a good decision?

Public Comments

1. yes if you are in trouble.
2. Ultimately, no, it is not unless you absolutely can not afford all three without doing so. By consolidating these loans, the two smaller loans, which would have been paid off in just a few years, will now be spread out over 30 years and will cost you THOUSANDS in interest! Even if these loans have higher interest rates, in the long run you will SAVE money if you pay them off separately without consolidating them into your mortgage.
3. I agree with Number two responder. Start paying down the lower of the two bills, by putting at least 25% more into the payment each month. Cut back on spending on other non-essentials. But to lump them all together, seems more expensive in the long run, and why pay all that interest over the life of your home. And don't even think of getting a home equity loan, the call it HEL but forgot one "L". Work it out between your budget and your payments. You'll come out ahead of the game.