You will now pay $46,080 to pay off the new loan versus $40,392 for the original loans, even with the lower interest rate of 9%. Get an extra job to bring in more money, and start paying off the debt.
This means you paid $5,688 more for the “lower payment.” Not such a good deal after all.
Don’t use your IRA to pay debts unless you are 100% confident the money will be replaced within two months, say, with a tax refund.
Otherwise, you’ll be hit with a penalty and taxes on the funds.
Debt consolidation seems appealing because, in most cases, there’s a lower interest rate on parts of the debt, and it usually includes a lower payment.