Q. I owe $85,000 on my current mortgage and have $21,000 in consumer debt. I am considering refinancing to consolidate debt and mortgage into one payment. I want a 10-year fixed to keep me on the same payoff schedule. Is this a wise idea?

A. Lots of consumers have consolidated high-cost credit card debt into a new low-cost mortgage.

But with home prices falling around the country, we think it would be wise to keep at least 30% equity in your home. You wouldn't want to end up upside down on your mortgage, which means you'd owe more than the house is worth. If that should happen, you wouldn't be able to refinance or sell without coming up with the difference in cash.

This is a good rule of thumb to follow even if you don't have any plans to move, because bad things can happen, as the Great Recession proved.

Your home would have to be worth at least $141,000 to leave you with 30% equity once the refinance is done. (Most banks will require you to have at least 20% equity after a refinancing before they'll make the loan.)

If you can do a cash-out refinancing at today's low mortgage rates, you probably could save hundreds of dollars in credit card interest charges. We have a debt consolidation calculator that will show exactly how much you'll save.