Consumer Proposal vs. Debt Consolidation Loan – Which one is right for you?

If you've looked into your options to eliminate debt, you're likely familiar with the concept of a consolidation loan. You may not be familiar with the Consumer Proposal program that our government regulates at the federal level. What's the difference between these two debt remedies? A Consumer Proposal can eliminate a significant portion of your debt.

It’s important to note that both can be a great solution to debt problems, it just depends where you are in life and what your future earning potential looks like.

A Consumer Proposal is a good choice if you have tried paying off your debts without success and are finding it hard to keep up with minimum required payments. If your income won't be going up anytime soon, consolidation loans have been denied, your options are limited.

Debt Consolidation Loans can be a good option when debt is manageable and interest relief is the goal. Approval is favourable for those in a stable financial position with a great credit score. The appeal is that a low interest loan doesn't carry the same credit score impact that a Consumer Proposal would.

How Do You Know Which To Choose?

Your choice should correlate with your budget and reflect your financial reality. Debt Consolidation loans may not cover all of the debt that you've got. You may also find that you've got too much debt to include everything. A Consumer Proposal accounts for all of your debt and holds all creditors to the same process and outcome, with very few exceptions. Because a proposal reduces the total debt, payments can be scaled to fit your budget. Our goal is to ensure that you can afford the proposal you're offering, getting back on track requires a balanced budget. To make this decision easier, we can compare these options with you, free of charge.

If you'd like to discuss your debt free options, connect with us today.

#ConsumerProposal #Proposal #Debt #DebtFree #FearlessFriday #LinkedInDaily #Motivation #FreeFromDebtToday #DebtConsolidation #DebtConsolidationLoan