There are several options available, depending on your situation.
For those who have a lot of very high-priced debt such as retail store cards, there may be an opportunity to reduce the cost of servicing the debt by asking a lender to provide a single loan to repay the balances on the other accounts. These are often called "consolidation" loans. Your credit report needs to be reasonably good and you will probably need to provide a guarantor, co-signer or collateral security such as a mortgage on your home or a motor vehicle. If you can arrange such a loan it is very important that you ensure that the credit card balances are repaid in full and the accounts are never used again. Many times when debtors do not do this they end up with twice the amount of debt!
You can contact your creditors individually and ask them if they would agree to reduce your interest rate and make lower payments over a longer period of time or settle for a single lump sum. This arrangement works best on very old delinquent accounts that have already been written off by the lender.
These services can help you put together a plan to offer to your creditors for a fee. They collect money from you and distribute it to those creditors that agree to participate. They cannot provide any legal protection from actions by the creditors that do not participate.
If you owe less than $75,000.00 (excluding the mortgage on your residence) and have a stable income and can service at least some of the debt then you may wish to consider a Consumer Proposal under the Bankruptcy and Insolvency Act.
There may be other options available to you, however should contact us for a free review of your financial situation so that we can explain fully the options available to you. Remember, Trustees in Bankruptcy are Court Officers who have a duty to make recommendations to you solely in your best interests.