Income:
Me-age 34: $56,000/year
Husband-age 37: $34,000/year
Debt:
$33,000 on home, 5.25 interest rate, 17 years left
$13,000 on HELOC, 3.25%
$14,000 on my student loan, 3%, I cant remember end date but payment is only $130/month
Savings:
$10,000 in Husbands ROTH IRA, not currently contributing. He is at a new job that doesn't offer 401K until he has been there a year
$20,000 in my state funded pension, don't work there anymore, so not contributing
$20,000 in my 403B, funded at 6%
Life situation: Married, 3 kids, ages 10, 8, 5, low cost of living in Iowa
When we buckle down and do a good job not pissing away money, we have about $2,000 extra/month.
We sold our camper and have $6,200. We have nothing in savings. I have previously subscribed to the Dave Ramsey way of thinking so its tempting to keep only $1,000 for savings and throw the rest at debt.
I recently asked how to refi my mortgage and someone gave the idea of using the HELOc, which I like. So I'm considering throwing all extra money at the mortgage, getting that down to about 20K, going to the bank and having them increase my HELOC limit to 20K, pay off mortgage.
How would you spend this $6,200 and the extra $2,000/month left after expenses?