Borrow Money To Pay Student Loans or Interest-Only Mortgage?
Should Ken use cash to pay for his wife's school or use it to pay down debt?
Answer: The first rule for getting out of debt is to stop borrowing more. The second rule is to start working on the debts you already have. You have to draw a line and say you’re not using debt for anything for any reason.
When you start working on your current debts, you have to start with the smallest and work your way up to the biggest debt you have.
You should refinance your home to get rid of the adjustable rate and to get it to a 15-year fixed rate loan. Then you should pay off your $1,500 student loan, finish your fully-funded emergency savings, and continue on with the baby steps.