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Detailed text transcripts for TV channel - KGO - 20140514:10:16:00

have a seat. reporter: tip two, cut out the credit cards. we are doing the famous dave ramsey plastectomy. reporter: tip three, make a written family budget. only one in three americans have one. when you agree on your spending, you pinky swear and spit shake. this is a contract between the two of you. reporter: what are the kind of sacrifices they will have to start making? you probably won t see the inside of a restaurant for a long time unless you are working there. reporter: tip four, dave s magic rule, pay off debt using what he calls the snowball method. we will list the debts smallest to largest. pay minimum payments on everything but the little one. attack the little one with a vengeance. i say to pay off the littlest one first because it s behavior oriented. it is a light at the end of the tunnel that is not a train. reporter: if they stick to the plan they can pay off

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