Do You Really Need to File a Consumer Proposal?

Money has always been a very private and delicate matter for most people. We don’t share how much we earn, save and especially owe, in the open.
Only our spouses or partners, and sometimes people who are really close to us know what’s really happening in our financial life. And this is good, as privacy is crucial for safety and financial success.

However, when we’re facing financial difficulty for a prolonged period of time our judgment of the situation can be affected by stress and emotions. Before we realize it, we’re up to our ears in debt, the monthly interest charges add up to more than our grocery budget and life turns into a race of scraping up just enough money to make all of those minimum payments by the due date.

Everyone deals with it in their own way. Some people hope for the best and believe the breakthrough is just around the corner, others just accept the difficulty as a normal way of life, and some ignore the problem altogether.

Today we’d like to partner with you and help take control of the situation before it is too late. And our partnership is 100% confidential.

The truth is, without help and advice from an outsider it’s really hard to see the situation for what it truly is. Here’s a typical story…

Susanne is a single mom of one who earns $2,700/mo. after tax. She was doing “ok” until she got laid-off and was unable to find meaningful work for 8 months. During this time she was living off her credit cards and went $15,000 in debt.

In addition, Susanne has $5,000 of debt on her department store cards from way before. She bought new furniture and re-decorated, not knowing that a month later she’d lose her job.

Now, she is back to work, earning almost $40,000 annually but still can’t make ends meet because of the $20,000 debt load and the hardship of being a single parent.

Her monthly budget looks like this:

Income: $2,700
Rent: $1,100
Transportation: $200
Food: $500
Phone & Cable: $90
Daycare: $800
Entertainment: $60
Clothes for her and her daughter: $100
Minimum payments: $550
Expenses: $3,400

Every month she’s in the hole $700!

Some would argue that she could cut down a little on the food, cable and clothes…ok…that will save her about $150 monthly…but she’d still be $550 over her income.
Susanne’s plan is to get a second job while cutting expenses at the same time. That is a good plan. However, what about that $20,000 of debt? It will take her over 8 years to pay it off if she can only pay those minimum payments of $550.

She is an honest person, willing to do what it takes to keep her word and make good on her promises but wouldn’t you agree that if she could file a proposal, reduce her monthly payment to $120 and be debt free in 60 months it would greatly help her financial situation?

Because that’s exactly what the proposal does. Susanne would likely get a debt reduction of 50%-70%, stop paying interest and finally be able to make her budget. This would all be done without the fear of not putting food on the table, or providing for her little one.

She would still need to cut some expenses but would no longer need that second job and her new budget would look like this:

Income: $2,700
Rent: $1,100
Transportation: $200
Food: $375
Phone & Cable: $50
Daycare: $800
Entertainment: $30
Clothes for her and her daughter: $25
Minimum payments: $120
Expenses: $2,700

With the Consumer Proposal there is no longer any shortfall and she will be debt free in 60 months!

I think you’d agree that this consumer proposal plan is much easier than getting a second job and paying $700 per month and taking 8+ years to repay all that debt.

And that’s why we’re not shy to ask you to call us if you’re in debt and are struggling to make your payments. Keeping the problem to yourself and hoping for the best will not make it better. The interest will compound, the debt will get bigger with every year, and you’ll have no choice but to go bankrupt.

Get in touch today to schedule your free no-obligation consultation!