I would also pay off the debt, and look at acquiring "good" debt in the form of investments. By this I mean take on a second mortgage as a rental property and have your tenants pay off the mortgage. Using this method you can make a little bit of money each month, and then acquire equity in the home itself or hold it down the road for cash-flow.
"Money over bitches, nigga stick to the script." - Jay-Z
They gonna love me for my ambition.