Consumer proposal and income
Question: I am considering making a consumer proposal, because the amount of debt that I have is just unmanageable. My home is worth about $350,000, with maybe $20,000 in equity. I have about $35,000 in credit card debt, and a $100,000 unsecured line of credit. I have three children and a non-earning spouse, and I earn $130,000 per year. I am making minimum payments on credit cards and the LOC (which is interest-only) and I am always hugging the line every month. It’s very stressful, and I’m not getting ahead. Is a consumer proposal an option for me?
Answer: Yes, a consumer proposal is a possible option for you. A consumer proposal works best when you have a good income, but are unable to repay your debts in full.
We suggest the following approach:
First, make a budget to determine what you can afford to pay each month in your consumer proposal.
Second, use our debt options calculator to determine the approximate cost of a consumer proposal.
If the numbers work, contact a consumer proposal administrator for a free initial consultation to review your options in detail, and to determine the best course of action.