<prompt> Human: My wife and I will be paying off her car with our forthcoming tax return. After doing so we will be applying the remainder of the return to my car loan. The balance of my loan will be roughly 7500 with a 2.9 APR. Between the two of us, we have more than enough money saved to payoff this loan, which would leave us debt free.My question is if it makes sense to use the saved money to pay off the debt and then refill the coffers? Or should we just continue paying the loan and building the savings?A bit more info: Monthly car payment 350 Currently 9 months ahead on the loan Loan will mature in Dec 2016 Plan to buy a home in the next year or so.It just feel like a large sum of money to pull out of savings. Thanks in advanced for any insightadvice you can provide!  <response>: Do you have a down payment saved? My plan of attack would be two pronged, save as much as possible to have available for a down payment and get rid of the car loan. I would most likely pay off the debt in chunks and look at my budget to pad my savings account.Aim for at least 20 for a down payment and then some to make sure you arent house poor or going back into debt. 