You might consider a credit "counselling" program now which will stop creditors from harassing you.
You can then investigate a formal consumer proposal or bankruptcy.
Consumer Proposals permit you to make a proposal to your creditors to pay off your debts.
Consider that a formal consumer proposal or bankruptcy may well permit you to recover a good credit rating much faster than credit "counselling". Negative credit items remain on your credit report for to seven years. This would include the records of your credit "counselling" and a list of your "bad debts."
Bankruptcy will "cancel" your debts with strict provisions. It also remains on your record for up to seven years, but you may well be able to re-establish credit after a couple years.
Know that the banks and credit card companies fund most credit "counselling" agencies. This makes economic sense since it helps save the banks the high costs of collections.
So called Credit Counselling is really a combination of debt consolidation and a formal consumer proposal
You benefit from the instant relief from collection calls, and possibly lower interest and lower payments.
There is no counselling and the people who offer the service make their living by fees and commissions earned by collecting your monthly debt payments and passing them on to your creditors.
Any one can experience debt problems. The important thing to remember is that you have options.
Many credit counsellors are just plain sales people with no training, no licence and get paid on commission
There have been frauds where consumers gave the credit counselling service their payments and the payments were never sent on to the debtor.See More . . .