We're now on baby step #2!!!! We've decided to modify the plan a little bit as well. First, we saved $1000, now we're on to paying off the credit cards. After thats done, we're going to save another $500 or $1000 (haven't decided yet), then move on to DH's student loan, then save another amount, then move on to my first student loan, then save, then pay off my other student loan and we're done!! Its gonna take a few years but we'll do it. I like the idea of saving in between because well, were we live, we've had our car broken into several times and I don't want to keep having to dip in and build up our EF constantly. We haven't been broken into for a few months now, so maybe we're safe for a while. Anyway, I anticipate getting our credit cards paid off by the end of the month, maybe even sooner!!