Apartment Deposits

I've had very bad luck getting security deposits back from places I've lived. (Move out due to sewage raining from the kitchen ceiling - that ended with legal action, change of landlord's mid-lease, etc.) I'm actually a very good tenant, so this time when there were finally no hitches to the reason I moved out - I'm really miffed that we still haven't received our deposit. It's been 52 days since "official" move-out, and still no word from the ex-landlord.

I just finished looking into landlord/tenant rights, and how to go about filing a suit with small claims court to get our deposit back. I found a letter on the Oregon State Bar's website to send warning my landlord, "Yo, gimmie my moulah back!" I'll mail it out tomorrow.

The good news is, under Oregon law, I'm now entitled to TWICE the amount wrongfully withheld. The questions is, what should we do with all the extra money once it's here? Options are: Use it all toward my loan, Contribute to our IRA's, Contribute to the 529 account we will soon have, Use some for play/Germany money, or put it toward our "dreams" savings. Of course any combination of the above is not out of the question.