Finances are overwhelming... What should we do?

Here's our situation -- My husband just joined the Army and I work outside of the home. We have a small child and the cost of daycare almost doesn't make it worth it for me to work.
Our bills total just over $3100 a month - $530 is ONE car payment alone. It is a 2006 Kia Sorento (yes, we're paying a lot thanks to rolling in other vehicles) it is at 6%.
We have already refinanced it to get to this payment. We have 5 years left! Thanks to a hit and run, it is SMASHED and won't start. Our insurance will cover with us paying the 1k deductible.
We simply can't afford this any longer. Would it be unwise to let it repo and finance a less expensive vehicle before it affects our credit?
We have A LOT of debt, but this car is just killing us. We've had finanical stress over the years, but this is now overwhelming.
Any suggestions?

If your husband is in the Army he has resources available to him for low percentage loans and also they offer financial counseling and other resources. The Army doesn't pay a lot, but they do offer some great benefits. Use them.

with a repo - you will still owe whatever they don't get by selling it - I had a 17000 car repo'd after 1 yr - divorce/lost job - they only got 4800 at auction a and after adding all their fees said I owed them 22000 - that helped push me into bankruptcy - if you do a repo - you won't be able to get any car loan for awhile

When you allow a car to be repo'd either by not making the payments, or turning the car over yourself to the bank, you still are liable to pay the balance of the loan less the amount the car is sold for. If you're loan is so large due to rolling over other cars, that means you're still going to have a pretty sizable loan--cars depreciate in value as soon as you drive them off the lot, not to mention you're still paying for other cars within that loan. The price the bank would sell the car for probably wouldn't come close to the loan amount, so in essence its not getting you anywhere--except for having a repo on your credit. You'd be amazed how fast that can show up depending on how your bank reports. It could be the same day.

Your best bet at this point is to buckle down and put as much towards paying off that car as you possibly can. You'll want to sit down with your husband and work out a budget. I know, everyone hates that word, but its a necessary evil. Keep an expense log for a month and write down everything you buy. This will give you an idea of where your money is going and where you can cut back.

There may also be some financing programs with the Army that your husband can access--start looking into those benefits.