We are already $38,000 in debt. Is buying a house out of reach?

Q: My partner and I want to buy our first home one day but between a few credit cards, a car loan, a sizable overdraft and three payday loans, we are carrying about $38,000 in debt. We have started wondering if consolidating everything into one loan would make more sense than saving for a down payment right now. How do we decide what comes first, or does consolidation change the answer? —Jordan

FP Answers: With $38,000 spread across various types of debt, the first job is to get the debt under control before trying to build a meaningful down payment. That does not mean giving up on buying a home; it means protecting the goal from the kind of high-cost debt that can k...