2014-03-17
A consolidation of debt is essentially a restructuring of a person’s existing outstanding debt by obtaining a loan from a financial institution or bank and paying off the existing debt and therefore creating for oneself a single payment with most likely a lower rate of interest. However, most banks or financial institutions require a solvent co-signer to secure the loan. The latter is probably the biggest obstacle in securing a consolidated loan.
A consumer proposal on the other hand is essentially an offer that is made to the creditors by using the BIA and the help of a Trustee. The amount that is being offered will depend on the amount of the debt and a person’s capacity to pay and respect the total terms of the proposal.
A proposal should be considered if a person cannot obtain a consolidation loan and is unable to pay his or her debts as they generally become due. The advantage of a consumer proposal is that the person has one single payment to make to the Trustee and that there is no interest accumulating on the debt.
2025-07-14
MNP Consumer Debt Index
Nearly half of Albertans (47%, +2 pts) report they are $200 or less away from financial insolvency each month — more than those in any other province — according to the latest MNP Consumer Debt Index.
2025-07-14
MNP Consumer Debt Index
Nearly two-thirds of Quebecers say they desperately need interest rates to go down (63%, -2 pts), according to the latest MNP Consumer Debt Index.
2025-07-14
MNP Consumer Debt Index
Younger adults and lower-income households are most likely to report stress, stalled life plans, and living paycheque to paycheque.
