2025-06-25
How to budget for inflation
The cost of daily goods has been rising over the past few years — increasing the price of food, gas, clothing, and many other essential items that Canadians need in their day-to-day lives.
Debt Consolidation Or Consumer Proposal
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.
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Options to consider if you can’t pay back your student loans
With the school year beginning and thousands of Canadian students beginning a new semester of post-secondary studies, all those hard-earned dollars from summer gigs are now being applied to tuition, books, transportation, housing, and supplies.
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What are the pros and cons of a Consumer Proposal?
Bankruptcy Alternatives to Bankruptcy
Let’s review what a Consumer Proposal is, as well as the pros and cons of filing a Proposal, to help you determine if it’s the right solution for your unique situation.
