How do I fix this?

I feel desperate. I had 4 cards with high interest. I went with a credit counseling agency.
1 is paid off, 2 are due to be paid off in about a year.
The 4th is the problem. They have underpaid Sears and I now owe more than I did when I started. I got a call from a collection agency on Friday. Said he was faxing paperwork to my HR Director at work. Read my credit report back to me. Basically devastated me within 10 minutes. I feel as low as anyone can feel.I paid $16 a month toward this debt for 4 years and it means nothing now.
I am living in fear that he will contact me at work. 4 years ago I felt suicidal at the thought of these debts. I feel like I'm back to square one. I told him I have paid monthly, but he didn't care, and said he needed to verify employment to begin the process of garnishing my wages.
I blame myself for not keeping a closer eye on the company paying my bills. All I am doing is paying interest. All weekend long I wished I could just die, to make this stop. Iknow it's a strong over reaction, but I am so tired of this.