Debt Settlement Programs and Your Credit Rating
The impact on your credit rating of a Debt Management Plan or a Consumer Proposal are the same. Both appear as an R7 on your credit report (R1 being the best; a bankruptcy is an R9). In each case, the R7 rating will be removed 3 years after completing your arrangement.
When deciding which debt settlement program, a Debt Management Plan or a Consumer Proposal, would work best for you there are many factors to consider. One of the main considerations is whether or not you can afford to repay all or just some of your debts. Here is what we recommend:
First, make a budget so you know exactly what you can afford to pay each month.
Next, contact an advisor and get expert advice about your individual situation. They can help you choose the right solution for you.