Recently Zen Habits posted a 12 step get out of debt program, and while we’re not on it specifically, I’d say we’d be at step 5 if we were.

We’ve

• Aknowledged the problem - We’ve enrolled in a debt management program
• Stop digging - We’ve stopped using credit cards and stopped playing the transfer around game
• Make small cutbacks - I think we’ve made big cutbacks, and I will do a post on those soon
• Start an emergency fund - We were actually able to take a few thousand dollars from tax returns and chose to put in an ING account where it is earning a nice interest rate.
• Take inventory - This is where we at at now. We’re learning where and how much of our cash going out. This step is huge and difficult. Once we have an understanding we will be creating a budget to follow