Cashback or Giftcard? Latte Factor Hits Home!  

I have earned $40 cashback on my Discover card. I can get a $45 Starbucks gift card instead of getting cash and stretch my money further. I love Starbucks and it's a special treat for me and I only go when I have a gift card.

However, this year, I've been saving all the extra cash I find each month (outside my normal pay check) and investing it or paying it towards debt.

I ran a few calculations and if I paid that extra $40 towards my home equity loan, it would save $197 in interest over the life of my loan. Talk about your latte factor!

Who would have ever thought how you elect to spend $40 could make such a big difference.

What would you do? Would you treat yourself to Starbucks or stay disciplined and put the extra payment towards reducing debt?