Steve and I have different views on most things on here, but I think both have merit for different reasons. Paying down the CC's fastest saves you the most amount of money because you avoid interest payments. Taking 5 months to put $1,000 in savings can be beneficial to that end, unless you get caught needing that $1,000 during those 5 months and then end up putting the difference on your CC's.
I'm in the Dave Ramsey school of thought. If you give murphy a place to live, he'll move in. Put the $1,000 aside as fast as you can, which is about 45 days, then pay off the credit cards and cut them up, never to be used again. Play with snakes, you're going to get bit. Some people use CC's as a tool for the rewards, etc. but that doesn't work when you run out of money and have to carry a payment.
It's a wash to do this financially as opposed to 5 months for the EF on Steve's idea. Meaning, you have an extra $200 for 3 1/2 months towards your CC's, which will erase whatever extra interest you might be paying for the first 45 days that you build your EF. I think the piece of mind is worth it.
Baby Steps
That's the baby steps. In February 2007 we had $25,000 of consumer debt, were making about $30,000 combined net, and had no savings. Now, we have no debt aside from the house we bought last September and furnished in cash, have an emergency fund, 2 roth IRA's, and make more. When your smart with money, its funny how you end up finding more and making more. I say all that to emphasize that it can be done, and works out well if you keep on track.
Make a list of your debts, smallest to largest. Pay off the smallest first, and then work your way up to the largest. People say the interest doesn't make sense this way, but there is something to be said for the psychological boost of getting debt paid off and having your money be your money again.
Another thing I would look into is consolidating your insurance. If you have homeowners and auto with the same company, you usually will get a bundling discount, plus a multi car discount, then every 5 yrs a loyalty discount. This could save you money right away if you don't already do this. Shop around for the cheapest for what you want - we had one company charge me $1,600 for six months for one car, and then we shopped around and ended up getting both cars for $1150 for 6 months for full coverage. Doing insurance on a six month note saves you a considerable amount on the premiums usually, for us about $20 a month. It would probably be worth waiting to put extra on your debt in order to do this, because it would free up that extra $20 a month. Then for the next 6 months, you just pay your savings account the car insurance each month. You earn interest and save money.
Something else, stop using debit/credit cards and start carrying cash in envelopes labeled with what it's for. We do this with the exception of gas, we pay at the pump on debit. At the grocery store, make your list by priority of how much you need something, then put the price next to it when you put it in the cart. If you budget $120 for groceries, figure in 8% sales tax in our state, you can get up to $111 to still be in budget. So if you get to the snack food on the list and you're at $108, then that bag of chips stays on the shelf. When you write down how much each thing is and keep track of it as you go, it's not a surprise at the counter anymore and you don't spend as much.
Really, the biggest thing I think you need to do is find a way to make some more income. $30,000 a year for 5 people is really tough and doesn't leave much wiggle room at all. I give you credit for making it work. I don't know how the work schedule is in your house, but we have neighbors who both work, but different shifts so that they don't pay child care. It's no way to live in a marriage very long, but if you guys get intense about paying off the debt and getting your EF built up, you could probably get it done in 18 months or less with some extra income. Maybe one of you could pick up a pizza delivery route, that pays tips too. Or get some extra hours. Right now you have $510 a month in debt payments aside from your mortgage, which is more than your mortgage. If you get rid of that, you would have less than $1,000 a month in revolving expenses, which lets you put $1,400 in savings, college funds, and retirement accounts. You guys are in good shape for having 3 kids, and with a good plan and some time, you will be in really great shape.