Are the tires rubbing the front fenders or the body seam/pinch weld on the firewall?
If you do need to cut the fenders, you should only need to cut the bottom corners, not the whole fender. However if you are concerned w/screwing it up your DD, your best options are as follows:
The cheapest would be to run a 2" body lift(should be under $100) from
4Crawler.
The next cheapest would be to crank the t-bars and add a few leaves to the rear leaf springs, but that would give you a very stiff ride. Figure about $125 for a set of used leaf springs, new center pins, u-bolts if necessary, and an alignment
Next option would be to run some 1.5" ball-joint spacers(can also get them from
4Crawler's site), and some 3" longer shackles in the rear to balance out the truck. Figure about $2-400+ for the spacers, longer hackles, 4 new shocks upper/lower ball joints, and an alignment.
The other option would be to buy some Bushwacker cut-out fender flares, about $160/pair at
4wheelonline.com, or look for some used ones. You cut the fenders to clear the taller/wider tires, the flares cover up the cuts and also provide tire coverage to keep you legal.