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Should my husband and I refinance our mortgage and add in our credit card debt and our car loan to have a lower monthly payment in retirement?

My husband is retired and receiving Social Security benefits. I am still working but plan to retire in about a year. We have a mortgage, $9,000 in credit card debt, and a $13,000 car loan. We are trying to decrease our monthly amount of payments, so we don't risk not being able to pay our bills each month once I retire. Should we refinance our mortgage and add in our credit card debt and our car loan to have a lower monthly payment in retirement?

Debt, Financial Planning, Retirement, Social Security
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September 2018

Dear Should I Refinance Our Mortgage and add credit card debt and car loan,

Make it your number one priority to rid yourselves of a car loan ($13,000) and credit card debt ($9,000) prior to your retirement. Do not think to refinance and add more burden to the mortgage unless you are able to get a reduction in interest rates which in this market of increasing interest rates would seem unlikely.

Once you retire, loans and other debt payments must be drastically eliminated to take advantage of enjoying your retirement situation and having enough funds to pay down the mortgage which the amount was not shared within the question. Be cautious, take your time, perhaps delay retirement a couple of months to maximize the accomplishment of paying down the debts (car and credit cards).

This plan will work to benefit both of you if you stay the course. Again, do not add to debt in an interest rate environment that is increasing. 

Look at your budget and work smart to make this accomplishment a reality. Be disciplined and smart.

 

Good luck to the both of you.

 

Jan

 

Jan Attard, MBA, Wealth Management Specialist

Technical & Fundamental Market Analysis

J. Oliver Maxwell, LLC

www.jolivermaxwell.com

jolivermaxwell@outlook.com

Tele:  #  925-876-1377

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