[mitchntx]

Since about 30, I've been saving, scrimping and hoarding pennies, working 2 jobs, 3 sometimes, all so that I could retire at 55.

Everything ... mortgage, debt, housing amenities, shop, tools ... everything was set up on this idea that I could retire with reasonable comfort and then work as I wanted, when I needed and do what I liked.

The last year has seen that dream slowly dwindle into the reality that I will have to work at this stinking job till I'm a hundred and 55. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/unsure.gif)

My job is great ... been there since March of 1982. I really like what I do. Unfortunately it comes with it's share of migraine headaches, mostly with the title of Manager attached somewhere.

I was talking with a very good friend yesterday and he made some really good sense. Might as well pull all the money from market accounts and buy a new car. The drop in value couldn't be any worse.

Oh well, just thought I'd rant a while ... kind of feeling sorry for myself. So I want all of you to feel bad, too. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/drink.gif)

[pknowles]

The Fed came out and lowered interest rates yesterday to try and free up some money for loans. It will take some time to work through the system, but it seems like you should be able to get a good rate on a short term loan assuming any bank wants to loan money to anyone. My mom just borrowed some money against her house (she has 70% equity, so it's not too risky) to pay off her car and credit cards. For her it was smart because her car loan and credit card interest rates were much higher. She is now holding onto an extra $300-400 a month, so short term it's good. However, she effectively took her short term high interest debt and traded it for a lower interest longer term one. Unless she pays it off early, I'm sure she will end up paying more $$$ to interest over the life of the long term loan. However, she has more short term cash flow. For her it was smart because she needs the cash flow to cover the raising cost of food and buy heating oil to heat her house this winter even though long term she will be worse off.

Mitch, your situation is different with a short term loan. Come up with a basic plan of how long it might take you to pay off these debts as they are and be realistic, then use some of the online loan calculators with amortization tables and compare what you pay in total interest and monthly payment to what you will pay for the short term loan. Depending on the rates you might be able to come out ahead in the short and long term, but most of the time people are trading one for the other unless they have crazy amounts of credit card debt or received really bad interest rates. Then you have to decided which is better for your circumstance. When you are armed with the rough numbers then go talk to the financial adviser at your bank. If your armed with the numbers they can't push you into a loan that hurts you and gives them the cash flow. It's just like buying a car, you do your research before you go to the dealer.

I'm 29 (young and stupid), FWIW and no financial adviser. But, I don't see how doing your homework and being armed with information of your own can be bad as long as you are realistic about how much you can pay toward your debt each month. It's how I figured out what I needed to do to buy my Camaro (started saving in 99 while in College) and it's how I figured out what debts to pay off first so my wife and I can buy a house next year when the market should be low. I like using http://www.bankrate.com/brm/mortgage-calculator.asp for a loan calculator. You can change the interest and term to what ever you want, so it can be used for credit cards, car loans, etc. The only difference is that the default numbers are set up for home mortgages, but they are easily changed.