Thank you everyone who e-mailed/commented me! You had wonderful ideas ;o)
This is the solution we have come up with: Spend the bulk of our income tax return reducing our debt. Take approximately $500 to fix up my vehicle, and stash $1000.00 into a CD.
The point of the CD is just in case something happens. We don't have an emergency fund (savings account), so if something did happen with my vehicle we would not have a back up. So, this $1000 in the CD could be used in case of an emergency.
By doing this we will be reducing our month spending by $174! Yeah!
Do you think this is a good solution?
Update: You know that darn truck that hubs just has to have??? Well, we are finally to a point in our loan that we owe less than the vehicle is worth. YEAH! I thought that this day would never come.