Foolplayer:

GULP! 11K in CC debt? I agree with Mike on this one. You must first examine why you have 11K in CC debt and then make sure it never happens again.

If you are determined not to accrue that kind of debt again, it may be worth rolling up into mortgage for reasons Mike & George pointed out. Especially if the CC Debt is at a high rate.

On the car, you need to look at the interest rate on the car loan and how long you have left to pay on it. When I bought my home, it did not make sense to roll the auto loan (7%) into the home loan (8.375%). Don't forget that by rolling a car loan into your mortgage, it like having a 30 year (tax deductable) car loan. 30 YEARS.

You said: >>If I get a 30 year mortgage and add the dept (11k cc, 9k car) into the
loan, I would "free up" about $700/m, with loan of 142k and payments of
approx $1200. I could prepay $200/m and have $500 remaining to invest,
IS THIS FOOLISH ?<<

Are you sure you want to prepay the mortgage? Once again, a lot will have to due with what interest rate you lock in and how worried you are aboult building equity. Example: If you get a 30 year at 7.5% and choose to prepay $200/month you are basically guarantee yourself a 7.5% return on your $200. But how much would your return be if you invested it in the market??

Good luck! AJE