Yes, this is a good plan. However, I would also encourage you to consider the bigger picture.

Why do you have so many credit cards? Why so many with ongoing balances?

Debt limits your freedom. You are right on to have a goal of paying off all of these accounts, including the car, as quickly as possible. But also make sure you address the spending behaviors that got you to this point in the first place. Otherwise, you may find yourself refinancing your car, paying off the credit cards, only to make new purchases that cause rising debt again.

I’ve provided a couple links that include a credit card calculator and an entire free program on debt reduction. I hope you find it helpful.Personally, I think it’s not a good plan. You’re doing this to save a couple of bucks on interest. It’s really not about interest. Let’s suppose you can get 3% on the car loan. That means that you’d be saving 5% of the 6k in credit cards. So you refinance your car, go through all of that hassle of recapitalizing your car, and you save a big $300 per year…IF you don’t pay off any of the loan balance.

I really don’t think it’s wroth this. It’s not about interest. It’s about behavior. There is also the issue of risk. You take "equity" out of your car (which there really is none because it’s a declining asset) and put it all towards debt. This is fine, until you total the car and owe more on the loan than the insurance company will pay you. Now you have no car AND a higher loan balance with nothing left to cash out. Less risk is good. Just pay off the cards and don’t involve your car.It’s not a bad plan depending on how much you owe on the credit cards.
The problem with extending your car loan to pay off the credit cards, though, is that the credit card debt can easily return.

My suggestion would be to focus on paying off the car (while maintaining payments on the cards). Once you have paid off the car, that debt won’t return until you buy a new car. Then use the freed up cash flow to focus on the credit cards.

more tips on managing debt consolidation:
http://www.ehow.com/how_5335396_manage-debt-consolidation.htmlThe money you could save by refinancing your car can easily be lost or never come at all. As a rule you never want to turn unsecured debt (credit cards) and convert it into secured debt (vehicles, homes). This adds to risk. If you default on a credit card they can whine and scream and some day sue you but if you transfer it to a home or car loan and it goes into default they can take you home or car. If you go through your budget and put any extra money towards these credit cards you can clean up $6,000 worth in no time. 8% interest on credit cards is not bad either and to risk a car on a couple points will not be worth it especially if there is any closing costs. Line up your credit cards and list them smallest to largest, put that list on the fridge and pay the minimums on all except the smallest and throw all your extra money at it. They will start being crossed off in quick order. Also without a car loan you could consider switching to just liability insurance on your car and save even more.

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