Open Question: Is debt consolidation as bad as a collection?

k heres the story my fiance is involved with a debt consolidation company to pay off credit cards problem is we can't afford the monthly payments anymore and they were the cheapest company. We just had a baby and it's cheaper for me to stay home than to pay for daycare where we live so we don't have my income. We got a summons for court today from one of the creditors filing a lawsuit even though we are working with debt consolidation. Now I'm scared they will put a judgement against us. We are considering bankruptcy because we can no longer afford the payments to debt consolidation. Anyone been through this? How did it turn out? Any suggestions? I wish credit cards didn't exsist! they are to easy to get behind on especially when you hit hard times. Guess no one would use them if we ever thought it would come a day we might not be able to pay it back. Please help!

Open Question: Do credit loans affect your credit score?

I've been offered a "personal loan" from Chase. However, it does not seem to be a true personal loan, rather a form a credit. Does anyone know more about this type of loan/credit. I'd like to use for for debt consolidation, but rather not if it will do more harm.

Open Question: Is debt consolidation as bad as a collection?

I am $12,000 in debt(4 different cards), with interest rates as high as 30%..If I continue to pay even just the minimum payments, I am going to be broke. I have never had a 30 day late payment, and can't stand the thought of it. I do have an auto loan on my credit report, that will not default. Even with credit collections, will having that current account help? I am 21, so i know it will all be gone by the time I am trying to buy a house, etc. But I am worried I won't be able to get an apartment, another car loan, etc. Should i turn to credit consolidation or debt settlement? Or would that be just as bad as letting the accounts charge off? Any suggestions?

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