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I would file for bankruptcy. Your credit is blown anyway, and it is a fallacy that you can never get a loan after bankruptcy. You can re-establish your credit, but it's going to take some time either way. I personally think that the credit card companies are predatory lenders. They deliberately extend credit to people who are high risk in order to reap the reward of late fees and interest payments for years on end. The interest rates that credit cards charge are higher than the rates the Chicago mob bosses charged. Usury laws were established to prevent the mob from doing this, but the big corporations get away with it. File for bankruptcy. It will cost you a couple grand to the lawyer, but then you won't have to look back or deal with harrassment. You'll be debt free (unless you keep a mortgage or a vehicle), but this gives you a good opportunity to re-start your life with sounder financial habits. Good luck. Employment and debt issues are second only to health problems in terms of stress. Stay cool.
Those credit agencies can arrange payment options for you with lower interest rates, but you'll still be paying for years to come. Some people feel a moral obligation to re-pay what was loaned to them, but I have so little respect for the business practices of these lenders that I wouldn't worry about that. You have to focus on what's best for you and your financial security.
Gather all your bills and go see a bankruptcy attorney. Listen to what he/she tells you. You can always elect not to file, but get some information so you can make a wise decision.
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