Consumer Proposal for the Holidays – the Best Gift to Relieve Your Debt Pressures
Asking for a consumer proposal on the holidays may sound like a strange request. It’s almost like asking to go to the doctor. But when you really think about it, what happens after you go to the doctor? You get better! What happens after you visit a Licensed Insolvency Trustee? Your finances get better, you are able to deal with your debts and your stress level goes down – way down! Consider a consumer proposal as the cure to unmanageable debt.
How Consumer Proposals Can Help You Stabilize Your Finances This Holiday Season and for 2023
Let’s think about the request of filing a consumer proposal for the holidays. Why does it make sense? It makes sense because if you’re struggling with debt (as a growing number of Canadians are), it will help alleviate that burden – or remove it entirely. So if you’re struggling with debt, it makes sense for you.
The holidays are supposed to be a happy time spent with family and friends and exchanging gifts. But if you are in a difficult financial situation, the holidays may induce stress because you have to figure out how you will afford all those expensive purchases.
In today’s world with high inflation, making ends meet from month to month can be difficult. A consumer proposal can put you on the path to getting out from under those debts and alleviating a lot of that pressure.
A consumer proposal is a process that allows you to settle on a payment plan with your creditors for your outstanding debts. You can protect assets and avoid bankruptcy with consumer proposals, making them a great option for many indebted individuals.
The first step to financial freedom in this case means speaking with a Licensed Insolvency Trustee.
What Is a Licensed Insolvency Trustee and How Can They Help?
How will a Licensed Insolvency Trustee help? And what is a Licensed Insolvency Trustee?
A licensed insolvency trustee is a federally licensed professional who will work with you to help you settle your debts, either via consumer proposals, bankruptcy, or other means.
A Licensed Insolvency Trustee can help in a number of ways. First and foremost, only a Licensed Insolvency Trustee can file a Consumer Proposal or a Bankruptcy for you. The great thing about either of those two options is they will immediately stop your creditors from harassing you and allow you to get your debts under control. With your debts in a manageable state, that will allow you to set aside or spend money on the people you love during the holiday season without having to worry about if you can afford to do so.
How Much Does a Consumer Proposal Cost, How to File a Consumer Proposal, and Other Answers to Your Questions
Let’s delve a bit more in-depth on what a consumer proposal (which may also be referred to by some as a consumer debt proposal) is.
A Consumer Proposal is a settlement offer to your creditors. It allows you to consolidate all of your debts into one affordable, monthly payment.
As part of the process you have to attend two counselling sessions and in the first one we talk about budgeting and financial planning. This is a key component to leading a healthy financial lifestyle. A budget will allow you to identify where your money is coming from, how much is coming in and more importantly where it’s going and how much is being spent on each aspect of your daily life. This is absolutely critical information that you will need to have in order to get your financial life under control. It’s great to be armed with that knowledge. Empowered with that information, you will be able to make more sound financial decisions. You will even be able to budget for certain expenses by setting aside a predetermined amount of money on a monthly basis.
For example, if you decide that you want to spend $1,000 in 2023 during the holiday season, imagine the freedom you will feel if you set aside just $85 per month. After 12 months you will have $1,020 at your disposal. When all the holiday sales happen, you will have money to spend on whatever it is you want!
Bankruptcy is another option that is available to you. In bankruptcy you are not making a settlement with creditors, you are really just telling them that you can’t pay what you owe. There are some different requirements in a bankruptcy and when you contact us at Caplan Debt Solutions we will be happy to explain how a bankruptcy will affect you.
Consumer Proposal FAQs
How much does a consumer proposal cost? That depends on your specific situation and the amount of debt owed. Get in touch and we can provide more information after a brief talk.
Will I have a bad credit score after a consumer proposal? The proposal will impact your credit score similarly to what happens in a bankruptcy.
How long does a consumer proposal take?. Start by speaking with a Licensed Insolvency Trustee at Caplan Debt Solutions – You can have up to 60 months to pay out your consumer proposal. You can offer payments over a shorter term but creditors like to see payments over 60 months. If you are able to increase the amount of your payments during the proposal then you can shorten the term.
How to file a consumer proposal? You need to meet with a Licensed Insolvency Trustee, who will then manage the filing process. A consumer proposal in Manitoba (and Canada generally) can only be filed by a Licensed Insolvency Trustee.
Is there a Consumer Proposal payment calculator? Unfortunately no. But after a consultation, we’ll be able to give you a rough estimate of what we think you should offer to your creditors.
Get Debt Free This Holiday with a Consumer Proposal in Manitoba from Caplan Debt Solutions
In keeping with the peace and harmony theme for the holidays, consider a Consumer Proposal or a Bankruptcy. It should bring you financial (not to mention mental) peace and harmony. Get in touch to take back control of your finances.
Best wishes for the holiday season from Caplan Debt Solutions.