[vishenda]

I am inclined to tell you to pay off the high interest loan first. First of all, you are missing out on equity in the house. Second of all, there is no point in paying interest if you have the money sitting in a savings account! I realize that you are looking to start a business, but it sounds like you won't be doing that until you are settled with the baby. So instead of making payments on a high interest loan out of your checking account... pay off the home equity in one lump some out of your savings, then (I'm sure your bank has this option) set it up so that there is an automatic deposit made directly from your paycheck into your savings account every week. This way you are not making a payment to pay off interest, you are making a payment to earn interest! You may lose out on some liquidity, but you are putting yourself in a better position debt-wise.

Hope this helps, have a super day!