Sobering stories, but glad to read that you've both gotten things under control.
My pay has also taken a hit in the last 12 months as a result of the downturn. I'm self employed and have several pokers in the fire. One of my biggest was a good (but boring, unfulfilling) contract which was as close to "guaranteed" income as you can get. Last summer I gave up that contract so I could take on other more interesting jobs that came up.
Unfortunately, the economic situation has cut the amount of good paying "interesting" work to a fraction of what I was getting for the "less interesting", secure work.
Drat!
Head is still comfortably above water, but I'm definitely not buying a Yaris either, Schultz!