Most companies will not give you a consolidation loan unless you only owe 20% of your credit limit (i.e. credit limit is $100 and you owe $20 on the card), and having a co-signer means that he or she has to have excellent credit, and if anything bad happens to this loan, it will go on his/her credit report as well as yours. If you want to salvage your credit, you can speak to a debt management consultant who will negotiate a lower APR on your outstanding cards or loans, however, they will be considered close because you will not be able to do anything but pay it off (within 5 yrs). If you have one card that has a low limit, I would suggest keeping that and paying it yourself so that at some time in the future, you will still have a credit card. Here is the debt management consultant I've used.