To see or use a trash compactor, suggest that you are in denial about some issue or problem. Alternatively, you are looking at your problems from a different perspective. You are looking at things in a more acceptable or presentable way.
How you are dealing with your own issues (represented by the garbage in the dream)
"Stuffing" or denying your issues in an attempt to not have to deal with them
Judging or denying your issues by trying to re-shape them into a neat, little, attractive bundle
"Crushing" and releasing old negative beliefs and thought patterns