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[quote=Anonymous]I am also irresponsible by nature, but married a man even more irresponsible than me, so that forces me to be the responsible one in order to keep a roof over our heads and food on the table.  It is not easy, but financial problems won't go away by burying your head in the sand.  Here are the steps I've taken, which are a variation on Dave Ramsey's baby steps.

1. Create a budget.  I use an excel spreadsheet, but there are plenty of tools online.  Figure out how much is left after you pay your bills, then set an amount for groceries, household items, etc.  Don't forget to allocate some for occasional expenses.  We almost always have something additional that costs about $400 a month - this month glasses, next month Christmas, the following month car maintenance.  Your budget should account for every penny you bring in, including savings and debt payments.  Track your expenses and adjust your budget as needed - I use mint.com for this.

2.  Establish a small savings account.  It seems like you've done this.  For us, we were ok with $1000 for now because we have plenty of access to credit if we need it in an emergency.  You might feel more comfortable if you have at least 1 rent/mortgage payment in savings.  But remember every penny in savings is money that is not going to pay down debt.  Use this savings for unanticipated expenses that don't fit your budget instead of using credit cards.  Replenish the savings if you spend it, but otherwise once you hit the savings amount you decided on, start using the money you were putting in savings for #3.

3.  Start paying down debt using the "debt snowball" method.  Usually(but not always) it makes sense to pay the highest interest first.  Google debt snowball Excel spreadsheet and fill it out.  It will tell you how much you need to pay each month and for how long to pay off your debt.  Mint.com will do this for you as well, but I prefer Excel.

4.  Use any extra money (tax refunds, bonuses, etc.) to establish/replenish savings if you haven't yet and then to pay off debt.  Never "reward" yourself and blow a windfall when you have debt.

That is as far as I've gotten.  I'm also a grad student and have a goal of paying off our credit card debt before the student loans hit so that we aren't so strapped for cash.

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