Answer

I have $25,000 in a 401 retirement fund, $40,000 in other mutual funds, and $25,000 in credit card debt. Should I pay off these cards and cut them up or take out a 5- to 7-year home equity consolidation loan to pay these off?

I would only advise consolidating debt if you are reasonably sure that you won't charge up your credit cards again. Otherwise, you'll end up owing money for both a loan and credit cards. You might want to request a PowerPay analysis from Rutgers Cooperative Extension to accelerate the repayment of your credit cards. Check the Web site www.rcre.rutgers.edu/money2000 and click on PowerPay.