I’d pay on the car.

That’s what Dave recommends to. All the bills including the car, then the build up to 3-6 months of bills in savings
then the house.
That being said, I’m such a security freak I’m adding to my savings a small amount each month as I snowball. So I currently have about $2,500 in savings–about one month of our bills. I add 1/4 of any extra money I make each month to the savings account. I know it slows down my debt reduction, but I NEED that little security, especially in today’s economy. If I’m looking at the baby steps correctly, put the money on the car loan, as you are still in BS2 as long as you have the car loan.Paying off the house is BS6, although I like the way you think. Owning your home free and clear is tempting. I think I’d want to move that to BS4, once the EF is fully funded–6 months worth of expenses. My 2 cents.