Tax Returns Finished!

I got my tax returns completed yesterday, both federal and state, and I'm getting a nice chunk of money back. After I pay off some bills and the real estate taxes and fund a baby emergency fund, there will be some left over to apply to debt. If I go by the debt snowball, I will pay off the van and more than half the Mastercard and then will have the Mastercard paid in full in 4 months, leaving only Visa left. But part of me really wants to pay off the Mastercard (it would be tight but I could do it), and then the van would be paid off in 4 months, again, with only Visa left to slay.

Major pro of paying the van first? That immediately frees up $200 (payment plus extra on the principle) a month. The breathing room that would afford in the budget would be very, very nice. Major pro of paying of the Mastercard? Getting rid of a larger-interest debt (12% vs 5%). I think I am going to have to pay off the van first. The timeline isn't a big difference, and it will only be a few dollars in interest difference, too. That breathing room will be a huge benefit, even if it is just psychological as I plan to snowball that $200 into the Mastercard payment. My only regret is that I had actually hoped to be able to pay them both off with this refund and have the Visa retired by the end of the year. Now I think my debt retirement plan will be delayed until February 2010, unless I am able to get a part-time job or a better paying primary job. But there is an end in sight, and that's a good thing!