Debt consolidation

You can consolidate thru a debt management program but it will severely damage your scores.

as bad as bankruptcy would damage my credit? Or worse?

It depends on how you look at it.

With bankruptcy your debts are erased so, lenders know you may have liquid money available to you that you may not have had before. They also know that you can't declare bankruptcy again for a number of years, so they might figure it's safer to loan you money. With bankruptcy, you will always have to answer "yes" to that dreaded question, "have you ever declared bankruptcy"?

With debt management services, the debts remain on your report while you're going through the program, so you still have the "debt to income" ratio on your report, plus the stigma of using the service. However, after the debts are paid off, it will eventually drop off of your report and lenders never even know you did it.

So in the long run (as in, looking at ten years down the road) it's better for your credit report for you to go with a debt counseling center than to declare bankruptcy. But if you think you'll have any need of getting credit any time soon, think twice before going with one of these agencies. You might have to get all those debts paid off and then wait an additional chunk of time before it goes away. Ask them how using their service will affect your credit report before you sign up.

You may be able to "do it yourself," however. Why not contact your creditors and tell them you're having trouble making your payments? They may lower your rates, allow you to change due dates or even skip a payment or two with no harm to your report.