to take. Just to add one point that is missing, an emergency fund, cash not credit. That should be your first priority, a thousand is a good place to start. Yes it seems counter intuitive but you'll be happy the first time you put out money for car repairs. Putting car repairs or dental visits or what ever on credit really sucks. While she's paying off $570/month in (presumably) credit card debt, she shouldn't start an emergency fund. The credit card itself *is* the emergency. Get that gone ASAP and then start saving for an emergency fund. MMM has, in the past, generally argued against emergency funds -- I think his advice is to take out loans (up to, and including, credit card bills?) if you have an emergency, because the odds of the emergency happening are relatively low. (Can someone confirm with a link to a previous essay? I can't remember which one that was in...) Why would you set money aside in a current savings account (&lt;1% return) when you could put that same money toward much higher interest debt? The debt (credit card) becomes your emergency fund as it is paid down. Really simple... And there's the real problem with emergency funds: who decides what an emergency is? Is Christmas gifting an emergency? That day at the spa you need just to keep yourself sane? Those nice new shoes so you look like Business Man at work? Pay off the credit card debt. If an emergency happens,