Is it possible to live debt-free?

DH and I are discussing the possibility. Admittedly, we've been working off some of our debts systematically for awhile now, but we're slowly becoming more determined to attempt not to create any more debts (what's the point in paying it off if you're just going to do it all again, right?).

Much of our decision has been spurred by reading Dave Ramsey's "The Total Money Makeover." The book was offered for free on the giveaway table at our church, and the man placing it there said simply "It helped my wife and I a lot, and if it helps others, then great, if not, oh well, but he backs up his money beliefs with the Bible, so we figured we'd spread it around some." At first, I was pretty skeptical. Debt-free? Ha! We own two cars, have school debts, not a lot of income, and are hoping to buy a house in the next couple of years. That doesn't bode well for living debt-free, does it? But, I kept reading, figuring at some point he'd get down to the nitty-gritty. And he did. I began discussing the options with DH, and he said "Aren't we trying to get out of debt anyway? This could really help." And so, we embark.

Our first step, however, is to get an emergency fund. We hope to raise $1,000 in the next two months. I'm not sure how well it will work, but at least we're trying. One must start somewhere, right? And so it is my goal to tell others that this is what we're working towards, so that I don't fall into old habits again. My very first step, however, is to lock up my credit card. It is far too tempting to use when money is tight, and thus, it must go. I still don't think cards are a horrible thing if you're already smart about your money, but when times get tough, it's far too easy to rack up some debts (which we've done). So the card is paid off, and is going to a dark place where I can't easily get to it. I haven't sworn off plastic yet, though. The debit card is still living happily in my wallet, but it will only be used for budgeted items (as all the money should be from here on out). We'll keep you updated!