My wife disagrees, help settle a debate

So, I could use some help here. I stupidly let my wife convince me to buy a new house 2 years ago. We bought a $500k home that currently has a $4300/month mortgage. we have 2 car payments totalling $800 a month. our take home each month is $9200. we are drowning. I tried stupidly to continue living the life we were accustomed to when we had a $1200/month mortgage, and ended up in credit card debt. I am dead set we need to sell the house. we have been chipping away at the credit card debt, and I'm totally fine getting lower end vehicles to lower/eliminate car payments, but in my opinion, the mortgage payments can't be sustained when it is 50% of our income. I want to be able to live life and do the things we want, while she's more worried about the "trauma" moving will cause her and our kids. she's not taking into account the trauma being broke is going to cause her and the kids. any thoughts or suggestions?