Keep saving or crush debt?

I would also hold the course until at least a few weeks after the baby is born — you never know what might happen.  You could have complications with the birth resulting in high medical bills, discover childcare costs much more than you estimated, DW might decide she cannot emotionally stomach the idea of going back to work, etc.

Agree with the comments that you should probably plan on staying put for awhile.  People in high cost of living areas like NYC raise kids in much less space than you have.  I am particularly wary of your idea of renting out your current place while taking on a new mortgage while you still have so much other debt.  VERY risky proposition, especially at your ages/life stages.  Baby #1 is going to change things dramatically.  Baby #2 might follow in a year or two.  There is a LOT that might change and your focus now should be on getting your financial house in the best order you can, and paying down, not taking on more, debt.

If you really are serious about this, start tracking your expenses and post them here.  We’re brutal, but in a tough love kind of way.  I’m sure we can find ways to help you cut back.

Oh, and one more thing.  DO NOT BUY ANYTHING BABY RELATED NEW!!!!  New baby stuff is kind of like the car industry — it loses 30% of its value the minute you take the tags off, and there is a HUGE market for used stuff.  There is absolutely no reason to spend a lot of money on baby stuff, including clothes, supplies, furniture, strollers, car seats, etc.  If you haven’t already, let friends and family know you are focusing on paying down debt and would love to help them clean out their closets, basements and attics.  You’ll be swimming in stuff before you know it.

Hope all goes smoothly with the birth — keep us posted on what you decide to do.