Should we take a loan out to consolidate debt first and then apply for the HELOC?

Probably not. While every situation is different, we would typically consolidate your debt into the HELOC. As long as the lender understands that’s the plan, you would qualify by rolling your debt into the HELOC.

If you don’t have enough equity to cover enough consumer debts to qualify, then it may make sense to consolidate the debts that cannot be covered by equity, but that situation is rare and you should consult with your strategist before making any financial decisions.