[disneysteve]

You are spending 55% of your income on housing which is way too much and not something you can sustain. If you and she are not able to substantially boost income, you need to find cheaper housing. Perhaps you can find another couple who you can share a larger place with. A 2-bedroom is generally cheaper than two 1-bedroom apartments.

The rule of thumb is to keep housing to about 30% of income. If you can't lower that bill, I'm afraid you will find it very difficult if not impossible to get yourself out of this hole. Spending almost 60% of income on housing can't be sustained.

It would still be helpful to see a full budget. You mention a car but don't list any related expenses. You don't list food or clothing. You haven't accounted for the whole $1,800 you bring in or the $300 she collects. Given your situation, I think it is critical that you know exactly where every dollar is going. I always recommend that folks keep a written spending log for a month. Write down absolutely everything down to the penny. Then, add in any recurring costs that don't get paid monthly (like auto registration, insurance premiums, etc.). That should give you a pretty accurate idea of where the money is actually going as well as if there is anything that could be trimmed further.