Looking for debt relief options can be an overwhelming task. With solutions like debt settlement, debt consolidation, and credit counselling available, finding the right fit for your financial situation may seem like a challenge. And then there’s the dreaded “B” word – bankruptcy. While all these options have their merits, there’s one debt relief option that stands out from the rest: the consumer proposal. Many individuals find that a consumer proposal is a preferable alternative to the more severe implications of bankruptcy. If you’re knee-deep in debt and looking for a lifeline, it’s worth understanding why a consumer proposal might be your best bet. Let’s take a look at the reasons why consumer proposal can be a great debt relief option.

Debt Covered in a Consumer Proposal

Consumer proposal is legal, so you can rest assured it’s safe for you. It’s a formal agreement between you and your creditors, it allows you to pay less than what you owe, up to 80% less than what you owe. You need to owe less than $250,000 to be eligible for a consumer proposal. Below are the debts that can be covered in a consumer proposal.

• Unsecured debts: This is the primary type of debt addressed by a consumer proposal. These are debts without any asset used as collateral, like credit card debt, unsecured bank loans, and certain lines of credit.
• Tax Debts: Outstanding balances owed to the Canada Revenue Agency (CRA), such as income tax, and payroll taxes, can be included.
• Student Loans: While student loans can be included, there’s a stipulation. The loan must be at least seven years old from the date of last study for it to be discharged through a consumer proposal.
• Payday Loans: These high-interest, short-term loans can also be incorporated into a consumer proposal.

Reasons Why Consumer Proposal is a Great Debt Relief Option

You can keep assets

One of the reasons why this debt relief option is great is because of its ability to protect your assets. Think about it: our assets, like our home or car, aren’t just things. They’re part of our lives, our memories, and our daily routines. Nobody wants to face the pain of losing something they’ve worked so hard to earn. The good news is, with a consumer proposal, you get to keep your assets. Instead of having them sold off, as can happen in a bankruptcy, a consumer proposal allows you to hold onto what’s dear to you, while still addressing your debt. It’s like having your cake and still eating it!

Your debt is reduced by up to 80%

Imagine slashing your debt by up to 80%, exciting, right? That’s exactly what a consumer proposal can do for you. Instead of sweating over every penny, you can breathe easier knowing a huge chunk of your debt is simply gone. And guess what? When you see that much debt disappear, it’s like a weight has been lifted off your shoulders. You’ll feel more determined to tackle what’s left. It’s not just about paying less; it’s about feeling empowered to get back on track.

Payment is stretched within 5 years 

Here’s another win with a consumer proposal: stretched-out payments over 5 years. Picture this: not only do you get to keep your cherished assets and cut down your debt, but you also get a comfy timeline to pay off what’s left. Five whole years! That means smaller, manageable monthly payments that won’t keep you up at night. It’s like the universe saying, “Hey, take your time, pay at your pace.” With this setup, you can balance other expenses and still pay off your debt. No rush, no pressure.

Interest stops accumulating

You know that feeling when you see your debt grow because of interest? It’s like trying to climb a hill that keeps getting steeper. But with a consumer proposal: the interest stops dead in its tracks. No more watching your debt pile up month after month. It’s like hitting the pause button, and your debt won’t inch any higher from interest charges.

You are not Alone

Facing debt can feel like a lonely battle, but with a consumer proposal, you’re not in it alone. At EmpireOne Credit, you’ve got a team of debt experts by your side. We are ready to be by your side, every step of the way. No more second-guessing or feeling lost in debt issues. With EmpireOne, you get clarity, direction, and a genuine support system.

Get Help Now

You don’t have to keep running from pillar to post trying to meet deadlines for multiple debts.  A consumer proposal will merge all your qualified debts into one and you only have to make a single payment every month for up to 5 years. Speak with one of our debt experts at EmpireOne Credit if you have further questions. Remember, with a consumer proposal, your debt can be reduced by up to 80%, and interest will stop immediately. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!