I would like your answer with a "what would you do" question.?

I am currently renting a 3bd,bath, home with a full basement,attached garage w/remote, full access to front/back yard, Washer/drier, Microwave, fridge included, Pet friendly (no additional charge for Duke my dog), No utilities are paid by landlord. Gas heat, sq feet under 1000. New carpet,roof,A/C in 2007 My mother had been renting it for the past 10 years, She still has tons of her things inside from a great family and became almost g/f of the landlord, till she ped away a year and a half ago. I took over the house and the payments went up a bit to $700.00 per month (from $500.00), $50.00 late fee after the 10th day late. The lights and gas cost a big chunk of change between $100.00 and $300.00 in winter, Lights reasonable i suppose about $100.00month.It is not well insulated from outside cold/heat. It is not in the best of neighborhoods, but the neighbors are quite,very friendly,and long time residents. We grew to know them well. The landlord is an incredibly wonder man,very understanding, easy to work with and quite frankly you could n't ask for a better landlord. Here is the concern: I am having trouble keeping up with the payments of utilities, and rent. I lost my good paying job and fell two months behind in rent. I finally found a job, however it pays $2.00 less per hour and I am finding it difficult if not near impossible to make ends meet. The landlord being a swell guy allows me to pay the back rent with no late fee at an additional $100.00 a month so now I pay $800.00 every two weeks till I'm caught up. Which i am now getting about caught up on. then it will be back to the $700.00/month. I am wondering if I should maybe downsize to an apartment for maybe under $500.00 a month and utilities should be under $100.00 for both gas/electric. I will have trouble with the dog I'm sure and have to pay for that. I will save major $$ if i do, but give up a lot to save maybe $400.00. I have included a link to photo bucket so you can actually see the outside of the house just to get better understanding of what I'm paying for. What would you do? Would you move? would you get a better paying job? maybe an additionally p/t job? a roomie? What's your thoughts on this?a href="http://s970.photobucket.com/albums/ae189/rrhorse/Home/" rel="nofollow"http://s970.photobucket.com/albums/ae189…/a