3 Major Advantages Of Filing A Consumer Proposal When Facing A Lot Of Debt

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Nobody likes to budget. In fact, a lot of people swear against it—only to be perpetually plagued by financial woes. Unfortunately, if you aren't careful, your financial situation can become dire in an instant. However, money doesn't have to be illusive or intimidating. By telling your money what to do and taking charge of your budget, you might find yourself spending freely and saving without too much trouble. My blog is filled with tips regarding good financial skills, so that you can start changing your financial picture today. You might learn how to budget and save a little better, so that you don't have to worry.

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3 Major Advantages Of Filing A Consumer Proposal When Facing A Lot Of Debt

18 May 2019
 Categories: Finance & Money, Blog


If you've found yourself in financial trouble -- where you owe a lot of money to creditors -- a consumer proposal may be the best course of action. It's a great alternative to filing for bankruptcy and typically comes with the following benefits. 

Reduce Debt Owed 

When your debt has reached a certain point it may seem impossible to pay back. There is light at the end of the tunnel when you file a consumer proposal, however. If accepted, it will significantly decrease the amount of money you have to pay back to creditors.

How much debt you still have to pay is dependent on the amount of money you make and how much debt you owe. Not having to pay back as much can give you some breathing room financially. You can effectively make payments and get your finances back on track without feeling as much pressure from creditors.

Looks Better Than Bankruptcy 

There are so many negative connotations associated with bankruptcy. Future lenders see this and may forgo giving you a loan. You thus are stuck with a negative financial stigma, even if you've made efforts to proactively improve your financial standing.

Fortunately, consumer proposals are not usually viewed in the same light as bankruptcy. You can thus restructure the debt you owe and not have to worry about being judged as much in the future. You'll also feel confident going forward since bankruptcy doesn't loom over your shoulders constantly.

Protect Your Assets 

When people file for bankruptcy they could potentially lose valuable assets. If you care about a lot of your assets, such as your home or car, this can be frightening. That's why it may be ideal to forgo bankruptcy in favor of a consumer proposal.

Under this debt restructuring, all of your assets will be completely protected. These assets typically include equity in your home, investments, and tax refunds. These assets are solely yours and you can do whatever you want with them. This is important for assets that you've poured hours of labor into, such as a home. 

Dealing with debt can be stressful. If you're finding it hard to reverse what was done, consider using consumer proposal secured debt services. It's often the best-case scenario when dealing with a crippling amount of debt. Just make sure you weigh this proposal's pros and cons carefully, so that you can make an informed decision regarding your financial future.