I generally would tell you to follow the Snowbal Method, too. HOWEVER, you know you will not have steady income. I think this changes things. So, I also would pay of the loan first. Then start the Snowball Method with the remaining debt.

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Homeschooling Mom to Daniel (12 Years), Andrew (9 Years), Stephen (7 Years) and Emily (3 Years)

*************Visit AyeOhKay's Blog - "Frugal & Fun"**************

Dave Ramsey addresses this - he calls it irregular income. We do a lot of stuff with "irregular income", due to our part time jobs. I agree with the poster who suggested getting Dave Ramsey's book "Total Money Makeover". His Financial Peace University materials will also go into more depth about irregular income.

And PLEASE don't feel embarrassed to share your story with us. Everyone here is supportive - and many, many of us are in need of financial help. You're not alone!!!

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If you need to get in touch with me, my email is teach1107910@yahoo.com.

Money has alway been something I had trouble with, even when I made plenty. We also, due to my husband's job had irregular income. I took time to get educated, and I mean really understand why I spent, what my options were during the not so lean times, etc. It is a process, and not a quick fix. Please visit my favorite website:

Debt-Proof Living HomeDebt-Proof Living Home

There is incredible advice here, and Mary will take you step by step through the process. There is a free e-mail that I really enjoy reading, has excellent tips.
I also got a 2 yr subscription a few years back for $1 per month. But you don't have to subscribe, although I personally am thankful that I did.

I hope I don't sound like I'm preaching, but it's one of those lightbulb moments where I wish someone would have told me all this information years ago before we got sooo in debt.

Good Luck!

Thanks ladies for your suggestions and support .

There are 2 ways to look at it - pay off the smallest debt first using the snowball method like Dave Ramsey and the show mentioned stated. (it was a good show btw). In my opinion the main purpose of this is to see things happen! It gets you excited and motivated. Of course if you have a huge lump sum to put down then it's not like you're chipping away at it a little at a time - I think paying either way will make you feel great.

I would definately suggest paying the larger loan off first. It has a higher interest rate and monthly payment. That way IF money is REALLY tight during the winter months you'll have less minimum to pay and won't be defaulting any payments.

After you have the largest one paid off you'll be down to 2 payments and I'd work on them from smallest to largest (debt snowball)!

And BTW, Don't be embarrased about sharing your finances - we're all here because we care about where our money goes. I'd bet most of us on this website have some sort of debt! You are not alone!!!

Good luck and let us know how it goes!!

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This exactly what I was going to say. I believe in your situation you should pay off the loan first so that it will free up more money each month to pay on the other debt. I believe you will see the fastest results this way.

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DS - 8
DD - 5

Personally, I would pay off the largest loan with the lump sum. I would then look at my savings. If I do not have at least on month of living expenses saved, I would put the rest here. If you have any of the large sum left over, start to debt snowball.

Another good place to look for advice would be Crown Financial Ministries. They have a teaching tool called the Money Map.. Good Luck!

Thanks, I will check out that web site . I can't imagine that there would be any money left over after we paid off the loan. I really hoping that there will be enough to pay the loan totally off or else we will have to choose another option.

I agree with BabeintheMoon on this one. For your situation, it would be a relief not to have that $600+min. loan payment to make during the lean times.

Exactly what we were thinking.