Ramsey is right on this one. With the husband out of a job, and possibly for an extended time due to his injury, they need this money to live on. It would be foolish to pay off debt now, because there is no way to know how long it will be until he is working again, and as long as he is unemployed the chance of being able to secure a new loan is basically zero. Kristen might have her own source of income, but it will likely not be enough to cover expenses if they have been living on two incomes long enough to get used to it. Any lender would look at the ratio of income to expenses as a definite red flag to their ability to repay. When you have great unknowns like this, the best thing to do is make cash last as long as it can.