What do y’all think?

Over the last few days, my hubby and I have learned that he will be getting a nice bonus at work. We also got some “surprise” money on an insurance settlement. With those two checks, we’ll be able to pay off the last of our debt with the exception of my car and our house. We have the $1,000 emergency fund in the bank (it’s actually about $1,200) and we know that my husband’s job is secure.
So, my question is….should I take the money we’ve been throwing at paying off the bills and put that towards the car and the house? Or should I add to our emergency fund and keep paying what I have been on the car and the house. At the rate I’m going right now, my car will be paid off in two years. The house will be paid off October 2010
I have to admit, the thought of having the house, car and all bills paid off is mighty tempting. At the same time, I like the idea of having a cushion in the bank.