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.
2025-10-06
MNP Consumer Debt Index
Ontarians’ financial vulnerability is intensifying as persistent economic uncertainty, concerns about borrowing costs, and employment anxiety weigh on household confidence.
2025-10-06
MNP Consumer Debt Index
The financial vulnerability of Saskatchewan and Manitoba residents is intensifying as their financial cushions shrink and more households edge closer to insolvency.
2025-10-06
MNP Consumer Debt Index
Albertans’ financial vulnerability is intensifying as persistent economic uncertainty, concerns about borrowing costs, and employment anxiety weigh on household confidence.
