I was in the same situation about two years ago. We were not at a point to increase our income, so we decreased our spending. We turned off the cable, we had Verizon Fios and were spending about $200 / month. We also decreased our budgeted amount for groceries from $300 to $150. My wife is awesome at finding deals and loves to shop. If your wife is the same way you might give her a challenge. Hand her $150 (cash) and see if she can buy groceries for the month on that.
I would also recommend making the credit cards wait. I know it sounds crazy but make sure the house is paid for, you have food to eat, heat to enjoy, and electric to survive.
I personally would cut up the credit cards. I did that and it has not hurt my credit at all, and here is why. I still pay on the credit cards and I pay the mortgage every month. My wife and I were too tempted with the credit cards so we got rid of them. Now we buy everything out of our checking account. Google "dave ramsey" you might be able to find some great information from his site.
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