Thank you all for the advice. I am being conservative on the bonus, assuming I will get about 25% less than I received last year. My potential is anywhere from $10K to $14K gross. But with the times, anything is possible. I know for my employees what the bonuses have been relative to previous years, so I am making an informed geusstimate (but of course, nothings gauranteed.

I hadn't considered the possibility of paying off the 401K first. I do like the idea of an online savings.

What tendAs most of you know, what tends to happen with 3 kids & 2 aging cars are the unexpected things. the house is new (a year old), so expenses are at a minimum. DH has been drooling over a flat screen TV. I've been able to talk him out of running out & buying one by reminding him of our debt free goals.

I am pretty stoked that the debt is going down over the past 7 months, after several years of it going the other way. I can see real progress - in spite of some setbacks (new tires on both cars, breaks, furnace repair on New Years eve, etc). You have given me something to ponder AJ. (AJ - can I just say, I feel like a celebrity has responded to my post :) - never expected you'd respond to little ole me).