We have an offer from a loan company to lend us enough money to consolidate our credit debt and significantly reduce our monthly payments, even though we have very little equity in our house. The interest rate is about 13 percent. I understand that this puts a lien on our house, but we're not planning on going anywhere for the life of the loan (15 yrs).

Are there other things to worry about with these loans? They are, of course, being offered all over the place. This one is from a lender out of state. -- via e-mail

ANSWER: Just because someone wants to lend you money, there is no reason to borrow it. You're right to be concerned.

It's dangerous to mortgage your home for more than it's worth, and at a high rate of interest to boot. The first problem with your income -- an illness or temporary layoff, for example -- would leave you in a vulnerable position. My guess is that you don't have much put away in emergency savings.

It would take only a few months' trouble for you to lose your house.

Your payments would drop, even at 13 percent interest, because you'd be agreeing to pay on everything, credit cards, car loan, whatever, for the next 15 years. Meanwhile you'd be tempted to run up the credit cards again. You'd still be paying for your present car long after it died, while you were also paying for its replacements. And you'd be risking your own home to do all this.

Concentrate on paying off your highest-interest loans, and leave your mortgage as it is.