To Refinance my Car and pay off my Credit cards or not to?[ Edited ]
Our revolving credit is too high and is hurting our credit. We've never been late on payments or anything. We just had a few unexpected dilemmas that forced us to use our credit, and now we have used up most of it, which is really hurting our credit score. We currently have the option to take out 10K of the equity on our truck to pay it all off (and CUT up the cards!!) and roll it into one payment. However, our rate will go from 3.9% to 8% without extending our current loan term. I absolutely know we'll have the ability to pay it off early, but I don't know if this is the smartest decision.
My husband will deploy in December, which will bring in an addtiontional $1,000/month, plus he'll go up to an 03, which will be another $1,000/ month starting in March or April. ALL of which can go to these payments, if not more since while he's deployed, I will be moving in with family.
Note: I'm all for this idea, and my husband is absolutely against it.