I know quite a few people younger than me who are in, what I would call, desperate straits. However, they do not see it that way and have come to regard what they are doing as routine (even though it is not).
Basically, they are relying on credit cards to make ends meet. Their primary strategy is to constantly shift balances from one card to another (to keep interest rates manageable). I have to tried explain to them this is not a good long term strategy. However, I just get blank looks from them.
In my younger days I was deep in debt and broke—and played the games with credit cards.
I knew I was in trouble—and the Dave Ramsey approach helped me find my way.
It took several tough years to turn it around but it was worth it.
However—I was single and not responsible for others.
Married folks with kids in that situation are going to have a lot tougher time when (not if) the economy goes south on them.
It is a real wake up call when you realize that nobody else really cares—and you are on your own.