Yes, your credit will be affected. I do not believe that it is as bad as a bankruptcy but is still pretty bad. When you consolidate your debts you are still making a monthly payment towards the balances in full. Interest is still being charged, sometimes they can lower your interest rates. The consolidation companies are usually working with the credit card agencies and may not always be working in your best interests. For example: I had a friend who opted to consolidate and the payments were being made late every month which caused late fees to be added on to her balances. Therefore the longer it took for her to pay off the accounts the longer she would be enrolled in their program paying the consildation companys monthly service fees.

In my experience I have seen that using programs such as Debt Roll Down, Debt Settlement and Debt Validation can actually get you out of debt at a quicker rate. Some programs may not have any negative affect on your credit at all, such as Debt Roll Down. Debt Settlement does have a negative affect on your credit but does get you out of debt in less time and for less money. Once debts are settled your debt to income ratio will improve, which will improve your credit score. If you have any other questions that you might want to ask me let me know, I will see how I can help!

I would advoid debt consolidation, you first need to get on a tight budget with a financial plan. Your credit score is your least worry, at this point. Without knowing your specifics, generally, you need to get your living necessities to a minimum, paying your food, shelter and utilities first. Get a partime job for a while, until you can get your debts under control. And most important, change the way you manage your money and spending habits.

Read Financial Peace by Dave Ramsey, it will help you, I promise.

AVOID consolidation. Talk to the CC companies and the hospital and try to work out some kind of plan with them. You must know how to talk to CC companies - they will most likely deny any kind of "payment plan". You must be firm with them and say "this is what I can do" and then follow through and do what you say. I would strongly advise following up with a letter saying the same thing so you have a hard copy of something in your file. By taking the first step, you look like the responsible person. Don't wait until they are hounding you for payment - then you look like a slacker.
The hospital should have no problem working out a payment plan with you.