Dear Helaine: My husband and I are expecting our first child in November. Currently, our only debt includes his vehicle loan, our mortgage and his student loans. We both have healthy salaries and currently live comfortably while making our monthly payments.
My question is, when it comes to extra money we receive from bonuses, tax refunds, family and the like, should we put that money into savings or toward paying down our debt? Obviously, the liquidity of savings is nice, especially with a baby. I am estimating that with child care and making payments on the debt, there won’t be much left over. And debt makes me CRAZY. Hence, no credit card debt for either of us.