Question: My wife and I have made a commitment to get out of debt, but we owe a lot–on credit cards and to small loan companies–and all of them come with high interest rates. Is it logical for us to consolidate those loans into one unsecured loan with a smaller interest rate? Should we consider a home equity loan? Response: Praise the Lord that He is leading you and your wife to get out of debt! And YES, it does make sense to consolidate your debts at a lower interest rate–but NOT RIGHT NOW! Here’s a sequence I suggest you prayerfully consider: (1) Develop a budget to help you make better spending decisions. (2) Commit to living on your budget for six months. (3) Work to wean yourselves from using debt to live. Consider consolidation loans only after you can live without credit so that you solve your true problems rather than simply treat the symptoms (your symptoms may be financial but your problems are always spiritual). A home equity loan may be the best interest rate you can get (shop around and check out the on-line/local Better Business Bureaus). It’s the most logical choice because you are using the equity to substitute for higher interest loans. But be certain that the loan has a fixed interest rate and not a variable or floating rate. However, you need to pray about all of this with your wife to be sure that you both agree on everything. With rare exception, most women don’t want to borrow on the equity in their homes. to them, a home represents security and comfort, not a source of money.