We are following “religiously”,  Dave Ramsey’s plan to becoming debt free.

Here is the breakdown of Dave’s plan:

1. Commit to never borrowing another dollar, ever, for anything.
2. Talk with spouse and get him/her on the same page as you concerning finances.
3. Do a written budget
4. Temporarily stop all retirement contributions
5. Get current on all bills
6. Get Health insurance
7. Get Life insurance
8. Amputate “toys” (bikes, boats, ATV’s etc) if they will keep you from completing the snowball within 12 months
9. Cut lifestyle (Cut CATV, Cellphone, Regular phone “extra’s”, Internet, Eating out, etc) and/or take second job if $1000 EF will take more than 30-90 days. (depending on income)
10. Save $1000 In baby EF
11. Chop up CC’s
12. Amputate cars that you can’t pay off within 24 months
13. Consider raising insurance deductibles to $500 or $1000 and dropping full coverage on paid for “bondo buggy”\
14. Do debt snowball
15. Save 3-6 months expenses in emergency fund ($10,000 - $24,000)
16. Start car replacement fund
17. Start furniture or other non-essential stuff replacement fund
18. Move up in car if you still feel the need to (must pay cash for it)
19. Start contributing 15% of your paycheck to retirement.
20. Take your first vacation since finding Dave if you can pay cash for it
21. Save up 20% for home purchase or pay down existing mortgage to the point you can drop PMI.
22. Save for kids college fund
23. Pay off house
24. Live like no one else since you have lived like no one else