Debt consolidation or Consumer proposal Which option to choose?
You are considering debt consolidation and wish to lower your debt level?
Have you though about a consumer proposal? It’s an excellent alternative to debt consolidation. This solution can give you many financial advantages, while at the same time freeing you from your debt problems.
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Has a Licensed Insolvency Trustee from the Office of the Superintendent of Bankruptcy of Canada, Poupart Trustee can certainly guide you through the process and advise you on the best option available to you. Our firm is a member of the Quebec and Canadian associations of insolvency professionals, which guarantees professional and rigorous services.
What are the similarities and differences between debt consolidation and a consumer proposal?
If you’re in debt, you’ve probably heard that debt consolidation can help you lower your monthly payments. This is the case. However, in some cases you may not be able to use such an option for various reasons. If you cannot apply for a consolidation loan from your financial institution, there is another option available to help you get rid of your debt: the consumer proposal.
Let’s see in more detail what are the differences and similarities between these two solutions.
- First, the consumer proposal allows you to consolidate all your debt in one place and make just one affordable payment per months without interests. Dept consolidation also allows you to regroup your debts, but you will have to pay interest (sometimes high) on the loan.
- The consumer proposal allows you to reduce the total amount of your debts. Consolidation forces you to pay all your debt plus interest.
- Both options allow you to keep all your belongings.
- The consumer proposal is for a maximum of five years. It is possible to shorten this period to less than three years. Dept consolidation gives you less flexibility when it comes to payments.
- The proposal protects you from the remedies and recourse of all your creditors, while debt consolidation protects you only from the creditors who are included in the loan.
Licensed insolvency trustee in the Greater Montreal area and Quebec
We are your partner to help you find a new balance in your personal finances.
01 As Licensed Insolvency Trustee, we are professionals who hold a license issued by the government.
02 our mission is to allow you to see your current financial situation more clearly and to accompany you throughout the process which will allow you to free yourself from the weight of your debts.
03 Declaring bankruptcy is not your only solution. We will take the time to take a close look at your situation and present the various solutions available to you.
We will work with you to restore your personal finances
Support
We will listen to you carefully and without judgment when you tell us the details of your debt problems.
Empathy
Our experienced advisers will be able to offer you a solution adapted to your situation that will help you even more.
Compassion
We will support you so that you can say farewell to your debts once and for all and get a fresh start.