Get Current First

Solita wants to know if she should catch up on her bills before proceeding to Baby Step 1. Dave says absolutely.

QUESTION: Solita from My Total Money Makeover in Virginia wants to know if she should catch up on her bills before proceeding to Baby Step 1. Dave says absolutely.

ANSWER: Yes, you become current or have payment plans with everyone who’s workable. Of course, first and foremost, you’re current with your necessities. That’s food, shelter, clothing, transportation and utilities before you do anything else. Then you get current with credit cards—those sorts of things, other debts—then you start your Total Money Makeover Baby Steps. Your first goal is to be current and then stay current while you’re working each of the steps. We don’t stop paying one debt to pay on another or that kind of thing. That’s not a game plan.