Plan to Get Out of Debt


Last summer I spent an hour in traffic commuting to and from my second job. Instead of listening to the same aggravating mumble rap song that was overly played I thought about what I could do to use the time productively. I googled “how to get out of debt.” After scrolling through some youtube videos (only to listen to while I drove, obv) I found Dave Ramsey’s channel.

His principles of money got me hooked! I watched (I mean, listened to) every Dave Ramsey video available on youtube. When I finished those I moved on to his podcasts, where people call in and ask for advice about their money problems (totally recommend the podcast btw). What I enjoy most is hearing people talk about how the 7 Baby Steps helped them get out of debt.

The 7 Baby Steps

  1. Save $1,000 as a beginner emergency fund
  2. Pay off all debt except your house using the debt snowball
  3. Grow your emergency fund to equal 3-6 months of expenses
  4. Invest 15% of your income toward retirement
  5. Start saving for your kids’ college
  6. Pay off your home early
  7. Build wealth and give

Thousands of people have paid off debt, stayed out of debt, and have become wealthy enough to give generously using this method. This WORKS. Why? Because this is a PLAN. You can say you’re going to lose weight, but if you don’t have a consistent plan of when you’re hitting the gym or what habits you’re going to avoid, you’re not going to lose weight.

Lose the Debt

I always told myself, “I’m going to get out of debt.” Cool. Doesn’t everyone want that? What are you actually going to DO about it and how will you be consistent with it? My debt repayment strategy was faulty because I was floating by making barely over minimum payments and didn’t plan out an overall attack.

“Insanity is doing the same thing over and over again and expecting different results.”

My nonexistent plan sucked, so I decided to use Dave’s plan (and God’s plan).

The first thing I did before doing this was create a strict budget, which you can read about here. After sticking to a budget and starting the baby steps I’ve paid off a little over $35,000 in 6 months. HASHTAG WINNING. Read about that here. I’m still on baby step 2 and I’ll be there for a bit, but I cannot believe how much ground I broke just changing my money behavior!

Millennial Challenge

  • What is your current plan to get out of debt?
  • How would the baby steps work for you?
  • Listen to Dave Ramsey’s podcasts now!

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Comments (13)

  • […] not to prioritize my debt or learn how to budget. You can read about my plan to get out of debt here. I didn’t realize that these behaviors would later be financially […]

  • […] You have to be CEO and decide for yourself and your money (aka your employees) that you won’t allow debt to rule you or hold you back from doing what you dream of doing. Cut out expenses, formulate a budget, and stay out of debt. Read about how I’m getting out of debt here. […]

  • […] Yuck. My monthly student loan payment is equal to a mortgage payment. It’s sad how I could be using this amount for something I really want like a fully funded emergency fund or a cutesy little house. If you’re a unicorn millennial and have no student loans you probably only have consumer debt. Whatever your debt is, make it a priority to pay it off. Read about how I’m getting out of debt here. […]

  • […] Something had to change, and first was my income. I got a second job and put myself on a plan to pay off debt. Read about my plan to get out of debt here. […]

  • […] Read about my plan to get out of debt here. To be honest I didn’t feel comfortable with Baby Step 1, which is only having $1,000 in an emergency fund. My emergency fund has its own emergency fund! […]

  • […] able to clean up house, reevaluate the status of my debt, and come up with a better escape plan. Read about my plan to get out of debt here. Reach out to your bank or other private lenders to see if consolidating and refinancing will help […]

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    nursemillennial 6 months ago Reply

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  • […] For guidance I followed Dave Ramsey’s Baby Step 2 and maintained consistency. Read about my plan to get out of debt here. […]

  • […] Dave Ramsey’s Baby Steps […]

  • […] Out of the 44.7 million Americans with student loan debt, most of us follow Dave Ramsey and other financial gurus in our quest to be debt free. Read about Dave Ramsey’s Baby Steps here. […]

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    nursemillennial 3 months ago Reply

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