Consumer Proposal or Debt Consolidation

A debt consolidation loan may not be your best option when it comes to consolidating and reducing your debts. There are several reasons why a consumer proposal may be a better debt reduction solution when you are looking to consolidate credit into a single, lower monthly payment.

Key Advantages

  • No interest
  • Pay less than you owe
  • Deal with all your debts
  • No loss of assets or security needed
  • Significantly lower monthly payments

Settle Your Debts – Don’t Just Consolidate Credit

A consumer proposal is the only legal, safe option to settle your debts for less than you owe. Other solutions may consolidate debts but they are not as successful at reducing your overall debt burden as quickly, or as securely as, a consumer proposal.

If you owe money on several credit cards, payday loans and other unsecured debts, chances are you have some debt problems. You likely do not have a large sum of money to pay off any of these debts or the ability to negotiate better payment terms on your own or through a debt settlement company.

Borrowing against the equity in your home is an extremely risky way to consolidate credit card debt and other outstanding bills. If you fail to make your payments, your lender can take action to foreclose on your home or take back what you have pledged as security for the loan. Debt consolidation loans can also carry a very high interest rate.

A consumer proposal, filed through a licensed trustee, provides the creditor protection you need while you work out a plan with your consumer proposal administrator to not only combine all of your debts into one, affordable payment, but fully settle those debts for less than you owe.

A Consumer Proposal Consolidates All Your Debts

If you are struggling with debt you will likely have more than one debt. You may not only owe money on several credit cards, but have outstanding bills, bank loans, payday loans and tax debts.

The advantage of using a consumer proposal as a form of debt consolidation, is that most unsecured debts are included in the proposal. This means that all of your unsecured credit can be paid off in less than 5 years and you will truly finish the program debt free.

Learn more about how to file a consumer proposal or about how Hoyes, Michalos can help you consolidate debt.

If you need help consolidating your debts, call us today at 1-866-747-0660 or fill out a free evaluation form. We offer a free, confidential consultation with a licensed Trustee. Let us help you explore all your options.

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