<prompt> Human: My wife and I both make respectable incomes. Our take home pays are a combined 65,000 and we both have 10k each in our 401ks. About 3,000 in a savings account. Our total debt at the moment is 170,000 broken down as follows:Mine: US DoE Consolidation loan - 28,673Stafford Loans - 43,121Sallie Mae loans - 16,434Discover - 2300 6500 limit, high interest 19Hers:Sallie Mae Signature - 6,257Sallie Mae Federal - 22,102Visa - 6105 2.9 interest until 122014 8000 balanceCash secured Personal loan - 800 3 interest, only 7 payments leftOurs:Truck - 30,793Car - 15,011We live rent free at the moment, only pay utilities which end up being around 300 a month. I have cut DirecTV a savings of 100 a month, and my monthly income is slated to increase by 250 because of healthcare plan changes. At the end of the month after we make minimum payments on everything, we have about 800-1000 left over which usually goes on my Discover being the highest interest rate. Would it be worthwhile to take the 3,000 out of the savings account and pay some credit card debt off? Both of our vehicles are in great shape and probably wont have any major issues. I dont see us needing an emergency fund that large, but I could be wrong.Are we in dire straits? Obviously of one of us loses our job, we would be. But were slowly chipping away at the debt we have and my income has been on a steady rise for the past 3 years and should continue on that path. We want to look into buying a home within the next 3-5 years, is this a possibility? 100-125k house MAX. Assistant: Sounds like youve made some bad choices in the past but are making some great steps like living rent-free in the right direction.If you have credit card balances and such huge student loans, you cant afford a 30 grand truck and a 15 grand car regardless of your monthly cash flow. Your net worth is something like -100,000, which is an emergency. Sell the cars and buy something cheap.Youre going to have to make a lot of hard choices as you realize how dire your situation really is, but it seems like youve already started down that road. Good luck!Human: Theoretical here - funnel 3,000 a month into a secondary account and pay all debts out of there. Essentially out of sight, out of mind, and force ourselves to live off the remaining 2300 monthly for all other bills and spending. In 5 years, what would our total debt look like?  <response>: I would strongly suggest cutting that 2300month to as little as you can get it. You are in emergency debt right now. 