Use the refund to catch up!

Question: Laura is getting $4,700 back on their tax refund. They have $23,000 in debt, and have the debts listed smallest to largest. One of the credit cards collectors is screaming at her because she isn't current with them. Should she start the debt snowball or deal with this guy first?

Dave Ramsey's advice: Get current before you start the Baby Steps. Then no one is hounding you. Pay off smallest to the largest if you are current. Get current, get $1,000 in savings and go down the list of paying off your debts.

• Hear Dave direct Laura's money traffic!