Saskatchewan Consumer Proposal

There is good reason to be optimistic about the average Canadian’s economic profile. The growth of household debt, which includes mortgages as well as consumer debt such as credit cards, continues to slow. In fact, household debt grew at the slowest rate in nearly ten years during 2012, although residents aged 65 and older showed a large increase in new household debt. Particularly encouraging is the fact that Canadians aged 18–44 dramatically slowed their rate of household borrowing, while residents aged 45–64 actually had a negative increase in their household borrowing rate. There was a net reduction in total household debt during 2012 for that age group.

However, when only the consumer debt portion of household debt is considered, there are some reasons for concern. By the end of 2012, the average consumer debt in Saskatchewan reached just over $29,500, which was well over the national average of nearly $27,500. Given the high interest rates charged on this debt, this could signal future problems. Once such debts get too high, even Saskatchewan residents with the highest-paying jobs may find their minimum debt payments unaffordable.

Perhaps you are already in that boat. If so, it is important to look into debt solutions such as the consumer proposal. Saskatchewan residents who are overwhelmed by their debt often find relief through this debt repayment plan.

The Basics of the Saskatchewan Consumer Proposal

Like many other Canadian debt solutions, a consumer proposal in Saskatchewan is designed to reduce the total amount of debt that you owe, as well as your interest charges. This makes your debt more manageable, enabling you to pay it off more quickly. However, unlike several other debt solutions, the consumer proposal is a binding legal agreement that can only be put together by a licensed bankruptcy trustee. Working with a trustee, you’ll develop a reasonable offer to your creditors to have your debts considered paid in full for less than the total amount owed.

Once creditors agree to a consumer proposal, Saskatchewan residents pay off their debt via the trustee in a lump-sum payment or in installments. If you fail to make payments on time, creditors may no longer be obligated to follow the stipulations of the proposal.

Pros and Cons of a Consumer Proposal in Saskatchewan

Determining whether a Saskatchewan consumer proposal is right for you depends on evaluating the pros and cons of this debt option in relation to your own particular economic situation. What should you consider?

Pros
• A consumer proposal is great for those with a large amount of consumer debt (up to $250,000; $500,000 for married couples).
• A consumer proposal protects your assets from creditors and keeps debt collectors from harassing you.
• A consumer proposal can force obstinate creditors to reduce your debt. If creditors representing a simple majority of your debt, meaning 51 percent agree to the proposal, it is binding on all your creditors.

Cons
• A consumer proposal is the last option before filing bankruptcy, but it has the same negative impact on your credit as a bankruptcy.
• If creditors representing 51 percent of your debt do not agree to the proposal, you may have to renegotiate terms with creditors holding the other 49 percent of your consumer debt. They may not reduce your principal as much the second time around as they did the first time.
• Other options, such as debt settlement, can often get the same principal deductions along with a lowered interest rate, and they do so without ruining your credit for seven years (although your credit WILL be damaged).

Find Out More Today

Figure out whether a consumer proposal is right for you. Fill out the debt relief form for more information about your options in Saskatchewan. You will also receive a free savings quote!


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