401k savings is great, but the debt burden is hell, especially in a young family. For what it's worth, here's my suggestion:
1) Up your 401k contribution to 3% - at least get some of that free money.
2) Pay CASH for everything from now on - no credit cards or charge accounts for a while
3) Focus all your efforts on paying off the Dell balance first - pay the minimums on the others
4) As soon as your Dell balance is paid off, focus all your repayment efforts on the Visa balance, continuing with the minimums on the others.
5) When your Dell and Visa balances are gone, what remains is that bank balance. Look at what amount of money you have available to pay off and see how long it would take to pay off the bank balance. If that amount of time is greater than 6 months, then take that debt repayment amount and put 50% of that toward the bank balance and 50% into a savings account. You NEED to have an emergency fund being built. If its less than 6 months, pay off the bank balance ASAP
6) Once the bank balance is paid off, up your 401k to 6% to get the full free money benefit
7) Continue paying into the Emergency Fund until you've saved at least 3, preferably 6 months worth of living expenses.
8) Once you've built your Emergency Fund, max out your 401k as much as possible. By the time you reach this point chronologically, you might have gotten a raise or something - send that straight to the 401k. Keep doing this over time until you reach your maximum 401k contribution amount per year (currently $15.5k if you're under 50)
You've already mentioned cutting back on things and as another poster mentioned, feel free to get rid of your landline UNLESS it is somehow connected to your internet service, like DSL. In many cases you get a discount for having the landline+DSL service rather than DSL service alone. Definitely cut your internet down to the lowest cost plan but don't cut it off completely.
Without getting into alot more of your financial situation there's no way to build a specific plan for you I'm afraid. In the current economy and for the next 18 months it certainly seems more prudent to me to be rid of the debt sooner rather than later. Free money for retirement is awesome but putting food on the table matters more right now.
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