1 - the cars: The fun car is paid off, and one of the modest daily drivers has a balance. Our insurance is only about $100/year for the third car, about $150 to register annually, and he uses his fun money for its gas. My husband spends lots of time at car club meetings and events with the car, so as long as he can use gift money to fund future (if any) modifications, I think we're okay keeping it. He pays for parts he finds mostly on Craigslist or Ebay, and installs them for free, either alone or w/car club friends.
2 - the $78,000: I think this is a good amount for us to have for savings, future vet bills, or a possible job loss or relocation down the line. I'll reach that number 6 years from now. I could possibly cut that amount short by a year and start lumping down on the mortgage once I reach $66,000 savings, or even after 4 years of saving $54,000.
3 - the husband: I think Equestrianerd is right, his choice to pay on a small CC debt with personal money isn't hurting us as a couple. The cards aren't maxed out and he makes all payments on time. I refuse to pay a penny of it since our bulk debt is gone. He is signing up for school classes online, so he'll receive GI Bill funds, and once that happens he'll be able to pay his debt off in about 3 months. I am not holding my breath until that chain of events happens, but I'm hopeful.
On a positive note, he always searches for coupons and free stuff online, he offers to cook meals at home rather than go out, he helped out with signing up for a cheaper phone plan when we combed through our bills, helped me paint a bedroom rather than hire someone, he let go of HBO when they were going to start charging $12/month for it, he helps with gardening so we no longer pay someone, and he works at an auto shop and does our oil changes. He used to want to pay someone to do everything or feel that we shouldn't ever question the smaller purchases. I am glad that some of his overall attitude about money has shifted.
To Googoo - We've had the heart to hearts and I don't think I can "change" him to be quite as excited about a debt-free life as I am. I wish I could. It would be a little easier if we were 100% in agreement. I've tried emotional pleas, Excel spreadsheets, mortgage calculators, and more on him. Did you ever get a man to change? Any advice? He is a simple kind of guy who likes food, beer, and cars. Maybe I just need the right approach.
His disability - He has horrible knees that click and swell up all the time, so he cannot continue with the laborious job he was trained to do in the military, and even walks are a bit painful. He does work full-time.