Question about consolidating debt

[Jordan Johnson]

I’ve been thinking of ways for my wife and I to quickly get out of the debt we’re in. Right now there are multiple things we owe on. We own our family vehicle out right so my thought was to take a loan out on our vehicle and use the money to pay off the rest of the debt. Our monthly vehicle note would be less than what we are paying now on everything all together, and I’m thinking we would still have some left over we could use to invest or put back down on the vehicle note. I wanted to get others thoughts on this idea. 

[Jack Faysash]

Jordan, I am having a hard time understanding why you’d take out a loan to get out of debt. The smartest thing to do is to attack the “bad debts” - debt on anything that is not an asset but a liability. This could be a boat, a camper trailer, a huge truck, student loans, etc. Your good debts should be paid off after taking on all of your bad debts. I suggest selling things you do not need, or even downgrading on things you can, such as your vehicle.