My income after tax & deductions (medical, insurance, 401k): $8,000/mo. $1,700 a month going into 401k. Presently spending most of the $8,000 most of the time, but wanting to cut back to $6,000 to start, so having $2,000 leftover. For the $2,000 per month, should it be saved or put towards debt, and if so what debt would you start with? I have additional assets I am not counting such as unvested stock awards and typically get a decent cash bonus on top of the $8,000 described above.
Assets
401k $130,000
checking $16,000
I Savings bonds $16,000
CD's $13,000
IRA $5,000
college savings $9,000 (3 young kids)
investments $5,000
property value $185,000 (well underwater on mortgage)
Debt
mortgage $203,000 @ 4.875% (25 years left)
2nd mortgage $34,000 @ 8.125% (20 years left)
student loan $20,000 @ 2.25% fixed
student loan $850 @ 5% fixed
Car $27,000 @ 0% interest
Credit card $4,500 balance @ 2.99% fixed