If your debts are relatively small but repayment is still difficult or impossible, assistance from a credit counselling agency may be an option. Non-profit credit counselling organizations can negotiate with creditors on your behalf. They also provide education and counselling on personal budgets and how to use credit wisely.
You and your credit counsellor will meet and discuss what you can afford to pay monthly towards your bills. The counsellor then works as an intermediary; your payments are made to the credit counsellor, and are held in trust accounts before being distributed to your creditors on a pre-determined basis. If you fully adhere to the program, the credit counsellor can insert a positive note in your credit file.