Moving, no judgment please

Anna
My husband, our 3 yr old and I are being forced to move back in with my in-laws. They own a multi family home and we previously lived in the above 1-br Apt until we moved in October of '14.
'15 was an awful year for us both emotionally and financially, with the only bright side being this pregnancy. I was screwed over with one job, laid off from another, forced to leave a third due to health and safety issues, and have only received pay-cut after pay-cut. Aside from that, we lost both our last-living grandparents, our credit cards and student loans went into collection, and were treated badly by a significant amount of family and friends.
So we have made the decision to move back into the 1br Apt above his parents with our 3yr old and new baby on the way, so that we can pay off our credit cards and student loans and hopefully by this time next year, buy a home.
I wanted to know what you ladies thought and whether I am making the right decision here. It'll be really tight, but I really think we're doing the right thing.