Baby Step 2

By Russell Kanning , 25 August 2026

Baby Step 2 is another concept from Dave Ramsey and his organization.

During this step you pay off ALL your debts, except for your personal home loan.

This can be quite a long process, depending on how much you owe, but is the next best step.

 

I personally think #1 is getting all your debts lined up ... and pay the minimum payments (so you avoid late fees).

 

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