We did this starting in 2007. We built a $30K savings nest egg and had only the mortgage for debt. After losing two jobs to downsizing and a 50% paycut for 8 months in the middle, I am now back to fully employed 33% off my income levels from 2009. Our War Chest is gone and our debt is heavy.
We have significantly reduced our lifestyle and are paycheck to paycheck on Rommin Noodles trying to slowly (very very slowly) claw our way back out of debt. We have two vehicles paid for that have a combined 345,000 miles on them. We don't eat out and go on no vacations. No movies, no concerts, no fairs, no amusement parks, no museums, etc. Fishing, reading, working, and recreation league sports for the kids is about it. We tythe time at church these days while we work to re-build our lives. Dave Ramsey is my friend these days.
Dude, Me and my family is screwed. We have our faith, great kids and our health. That is what is most important to us now. I have given up on any sort of retirement or wealth to share. And I'm at peace with it. My focus is on the kids now.
For the record, I am not complaining, placing blame, looking for handouts, etc. But I am fine with the country collapsing now. I have nothing to lose as long as my family is healthy and safe.
Take heart and have faith in yourselves. It sounds like you’re doing all the right things. Use all of the gifts that God gave you to their fullest potential; no one can do any more than that. Chip away at the debt, keep at it. You’re only screwed until you’re not anymore.
Actually other than insanely wealthy with another dual citizenship passport in hand, there probably isn't much of a better place to be right now than with nothing to lose.