You sound financially safe. Therefore, I think you should keep the loan on the car and build up a bigger nest egg. Once you get 10k, put another 5k or so into individual stocks that are reasonably safe. Use your credit cards and pay off every month. Then, you will have free cash available if needed. I support you in making family a priority. Meanwhile, look at your monthly expenses. You might be able to trim 100 to 200 every month. That is after tax money.