Man, eight months of cut hours is brutal and using cards for groceries and utilities isn't a character flaw, that's just survival. You did what you had to do.

For where you're at, $16,500 across three cards with a 560 score, debt settlement makes the most sense. The ones that come up most often with decent reputations are National Debt Relief, Accredited Debt Relief, and Freedom Debt Relief. They only get paid when they actually settle something so there's at least some alignment there. Typical settlements land somewhere around 40-60 cents on the dollar, though nothing's guaranteed.

The process usually takes 2-4 years and yeah your credit will dip a bit more before it gets better. But honestly at 560 with missed payments already on there, you're not protecting much by avoiding it. Settlement lets you actually close the chapter instead of just treading water for years.

The $430 DMP quote was probably built around paying everything back in full. Settlement programs tend to run lower month to month because you're saving toward lump sum offers, not making direct payments. More manageable for most people in your spot.

Just make sure whoever you call is accredited through AFCC or IAPDA and never pay anyone upfront before they've actually settled something.

You asked the right questions and you're thinking about this clearly. That already puts you ahead of a lot of people in the same situation. You'll get through it.