Take Out Student Loans?
Ken and his wife have more than one loan. Which should they take out first?
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.