Hi, I'm just discovering MMM and like what I see so far. I got about $4,400 back on my state and federal returns this year. Conveniently, I also have a personal loan with a balance of about $5,000, that I pay about $270/month on, and a $4,800 balance on a credit card with a 0% interest rate until May 2016. I am also the owner of a fixer-upper home, have about $62K in student loan debt that I pay about $500/month on, and have a 401k through work that I contribute about 8% to.
I'm trying to figure out how to best apply the tax refund to various debts and deferred purchases. Should I just use it to knock out the balance of that personal loan and free up $270 a month? Or should I apply about half of it towards the loan balance, thereby reducing my remaining payment term to about 10 months; use about $1,000 to invest in an index/mutual fund; and put some of the remaining towards DIY items for the house?
Looking forward to any and all thoughts/opinions/guidance. Thanks!