What to do with upcoming Christmas bonus + tax refund?

the CC...get rid of it! It feels great to have one less bill too.

Treat the top ten Gag users to 2 day stay at Disney Land. :)

Just kidding, pay off your credit cards first.

CC first. Small bills first, big ones later. That's what I've been told to do.

My suggestion is that you follow these steps, in this order.

1. Set aside $1,000 in a bank account as an emergency fund.

2. Destroy your credit cards. The $1000 should cover most minor emergencies.

3. Pay off your debts, starting with the _smallest dollar amount_, rather than the highest interest rate. Paying off the lowest dollar amount gets you a quicker victory, which helps keep you focused and motivated.

4. Pay off other debts, smallest to largest. Get on a tight budget and trim your luxuries and expenses to the minimum. Get an extra job or overtime, and throw every possible penny at the debt. When your broke friends are making fun of you for living like a monk, you're on the right track.

5. Once you're out of debt, build your emergency fund to 3 to 6 months of expenses. Continue overtime or extra job to get this done quickly.

6. Once the car loan is paid off, continue saving a few hundred bucks a month in a new car fund. If your current car lasts, say, five more years, and you save $300 per month, you'll have $18,000 in five years. No need for a car loan ever again! Also, _never_ buy a new car. They loose 20% or more of their value in the first few years. You can get a very nice car that's a few years old, and get a much better value.

7. Breathe easily. I've been living this way for about 5 years, and it's amazing. I'm far from wealthy, but I haven't stressed over expenses in half a decade.