What is a Consumer Proposal?
Consumer Proposals have been around for decades, and each year almost 50,000 Canadians take advantage of it, but many people are unaware of this debt settlement option.
A consumer proposal is a formal, legal settlement made to your creditors in which you offer to pay them a modest amount each month for 5 years or less, with 0% interest. And the creditors agree to write off a substantial amount of the principle. So you could pay as little as 20-25% of your credit card/line of credit debts with no interest.
And it’s ‘open’ – meaning you can pay it as quickly as you are able, without penalty. Plus, you get a full legal release from your debts upon completion. All done through a licensed Trustee.
Furthermore, you get to control your own assets in a consumer proposal – keep your house/condo, buy & sell a car or a house, investments, RESPs, etc. No restrictions.
Click here to plug your own numbers in and see what you might settle for with your creditors in a consumer proposal.
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