The strain of debts can be too great for some people to bear. But you should know that there are options that you can consider to help ease up the burdens of your debts. One of those options is a consumer proposal in Vancouver.
Basically, a consumer proposal in Vancouver is an agreement that you make with your creditor stating that you will settle your debts but using a more agreeable repayment plan. Here are the benefits that you can get from a consumer proposal in Vancouver:
- It consolidates your debts.
If you owe money from multiple financial institutions, it can be hard to keep track of them. This is true especially for unsecured debts when the charges and interest rates might differ from one financial company to another. To make it easier to keep track of your debts, you should consider a consumer proposal. You are not making multiple payments that come with different interest rates but rather paying just one debt handled by your Licensed Insolvency Trustee.
- It can lower your debt amount.
One of the benefits of having a consumer proposal is that it reduces the amount you need to pay. With the help of a Licensed Insolvency Trustee, you can negotiate how much you can afford to pay from the existing debt. This can help lessen your burdens. In many cases, debtors are left with only 25% of their original debt and this can also be paid in staggered payments for 5 years.
- It provides you with legal protection.
When you are dealing with multiple debts, you don't have peace of mind. You are probably always worried that your creditors will sue you or seize your assets. What consumer proposals do is halt the harassment you might get from your creditors. They won't be able to touch your wage and any lawsuit that might be filed against you will be halted.
- It can help improve your credit score.
Many people might think that having a consumer proposal will hurt your credit score but the more you get deep in debt and the more delayed your payments get, the more your credit score will suffer. And compared to other options such as filing for bankruptcy, your credit score will be better off with a consumer proposal.
- It helps you gear your life toward financial freedom.
The first step to financial freedom is acknowledging your financial problems and finding ways to fix them. With the help of your Licensed Insolvency Trustee, you can find ways to improve your financial standing and be on your road to financial freedom.
It might be a long journey but it's a start. What is important is that you find a good Licensed Insolvency Trustee such as Mike Wright & Associates Inc. to help you out.
Shane Taylor is the author of this article. To know more about Inquire About Debt Solutions please visit our website: debtfreebc.ca
