<prompt> Human: Personnel Finance youre my only hope...I turned to the darkside when it comes to my finances and I could really use your help!TL;DR - 125K in debt.. Help!My family was living the American Dream up until 4 years ago ... 85K income, house, 2 cars, maxed out credit cards with perfect credit and Starbucks triple foam lattes every day. In 2012, the Death Star went fully operational and sent us into a world of hurt. After returning from Iraq as a reservist, I decided to go back to school to upgrade my skills. We scraped by, living month to month and pay check to check, tapping out our savings and maxxing out student loans to make ends meet. Our income went from 85K to 45K almost overnight. We went on public assistance and dealt with a very public school accident involving one of our kids. My wife saw a major reduction in hours at work following the accident- things got ugly fast. Every time things seem to get better, they actually get worse. In 2013, we lost our only vehicle in a car accident in July, my wife lost her job not enough clients and I was laid off from my first decent paying job in almost 2 years after 5 months right before Christmas. That was the worst, because we had a newborn and had no heat in our home except for 2 small space heaters the entire winter.I found a job two months later that paid almost 20K more a year then my previous job, 1100 miles away. We moved and thought we were going to stay awhile; boy I was wrong, within 11 months my job disappeared like Obi Wan on the Death Star and I was left searching for answers. Within 4 months our emergency fund vanished. We lost our house short sale after our tenants trashed the place when they moved out. Eventually I found another job 1600 miles away. The pay is decent 64K after a recent raise but my wife still isnt working because she has to cater to our child who was injured school and therapy schedule 8 -1 school day 3 days a week and up to 3 therapy appointments a week. We also have a toddler to care for. Day Care is EXPENSIVE! Oh and Im on the road 4 days a week, so Im never home. Which leads me here...86K in Debt with a FICO score of 599!I just found out my wife defaulted on 20K federal student loan debt and our taxes have been garnished. I have over 9000 in debt from the Military Star Card The most evil credit card in history which is in default, and over 45K in student loans in deferment and working on getting them on an income based payment schedule. My head hurts thinking about how to stupid Ive been the last few years. Im attempting to negotiate with our creditors. My credit union has offered to cut our car payment by 90 with a 16 month extension and allow us to miss this months payment 557 to take care some of our smaller amounts in collections... mostly related to the auto accident.Nelnet has offered a repayment plan of 50 or a lump sum payment of 2500 for my wifes student loan, however the other company servicing her debt isnt budging on what she owes or how much they want for payment, currently 150. My military Star card credit account wants a payment of at least 2000 before they will even entertain the possibility of a payment plan..Help!Assets: Emergency Fund Savings: 3150 windfall money and performance bonuses401K: 5000 215 month - I only contribute to the company max match which is 4 Debts: 833 monthCar Loan 1: 24,600 12.49 over 5 years 557Car Loan 2: 5300 13 over 4 years 143Loan Moving Expenses 2000 18 over 18 months 133Monthly Income: 6110 Month: Work 5345 and VA 765Monthly Deductions: 984 Taxes, Medical PPO DentalVisionLife No State Tax - NVLiving Expenses for Family of 5: 3965Rent: 1125Utilities: 242 Electric, Gas, Water average over 8 months Cell Internet: 302 Verizon Contract Ends in October 4 lines 220 and Internet 82Groceries: 750 Food Away from Home: 310 Gas: 185 Home Personnel Pet Needs: 290 laundry soap, bath soap, toilet paper, haircuts, dry cleaning, dog careMedical and Dental: 170 Co-paysEntertainment: 38 Hulu, Sling, SpotifyCar Renters Insurance: 161 USAAAuto Maintenance: 73 Registration and Taxes 550 year and oil changes every 3 months for both carsGifts: 90 Christmas savings club 75 Weddings 100 1 a year Birthdays 20 per niece nephewClothing: 150Tutoring Kid Activities: 125I realize that my situation is unsustainable. With a balance of about 115 each month, Im already making cuts to some areas I can such as eating out and gift giving. Tutoring and activities are not negotiable as it takes my kids out of the house and gives my wife a much needed break.Saving for retirement isnt that big a goal for me since I will be eligible for a military pension of about 3126month at age 58 20 years. I would like to continue plugging away at saving if I can and continue contributing up to my company 401K match. Short term goals include: Build up emergency fund Pay down debts, especially student loans Saving to buy another house. We are enrolled in a home buyers class and will qualify for grants for down payment and closing cost assistance once we complete the program.  <response>: You spend too much money. 1060 on food. 300 on dogs, 300 on cell phones, 150 a month on clothes, 1,000 on cars. All of those things could be half as much fairly conservatively. 