I can't use file cabinets either.
I have a thirty one tote style baskets on a top shelf ... where one is library books, one is incoming mail and a checkbook, one is greeting cards ... and then the next shelf is a different style of totes and baskets and houses medical records, insurance stuff and photos and scrapbooking.
It works for me. The "clutter" of it is out of sight.
I have the same type of organization or lack there of in the kids room and in their playroom.
Hanging files weren't working for me either. I have embarrassingly large piles of filing to do.
However, I just moved my filing cabinet so it's right next to my desk, and now I don't have to get out of my seat to file something. E.g. pay bill > open drawer > drop bill in file, instead of pay bill > put bill in random place or even 'to file' tray...bill never gets filed. It shouldn't make a difference, but it is working much better already. I just have to catch up on the old piles of filing!