I absolutely believe in the steps RD has outlined. It works. It got us down to minimum CC payments of $120/month plus the car pmt ($390 but that is down from close to $500). We are in BS2.
HAVING SAID THAT: when DH was let go, his severance amounted to 3 months worth of minimum living expenses (rent, utilities, car pmt, CC, food, gas for car, car insurance). For us, this comes to about $4k a month, $3k if I forego gas for car, food, CC pmts (our rent alone is $2k).
I don’t know what I would have done without that 3 month cushion. I have never had ANY cushion before (we have built and used our $1k BS1 so many times I can’t even count). So when DH gets another job, anything he makes above and beyond our bare minimums is going to go into a FFEF.
Now, it may mean that I put it into a FFEF, and once I hit the total payoff amount for a CC or whatever, I take that $ and pay that debt off, (the car debt for example, which is a huge monthly bill) but I’m not going to onesie-twosie it like we were doing before when we were totally focused on BS2. Having $12k in the bank is way more important to me given what we are currently going through.
But that is just our house. YMMV, and most likely, will 🙂