The growth of household debt, which includes mortgages as well as consumer debt such as credit cards, continues to increase as the years pass. The increasing credit card, student, and mortgage debt can lead to some real troublesome financial issues. 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).

Insolvency & Consumer Proposal Statistics in Saskatchewan

Nationwide
Q3 20 Q2 20 Q1 20 Q4 19 Q3 19 Q2 19 20 vs. 19
Insolvency 21,335 19,767 33,237 35,155 37,708 35,076 -19%
Proposal 13,668 12,903 22,032 21,884 21,161 20,976 -12.3%
Saskatchewan
Q3 20 Q2 20 Q1 20 Q4 19 Q3 19 Q2 19 20 vs. 19
Insolvency 560 571 861 1,008 849 840 -13%
Proposal 387 382 540 583 548 519 -11.9%

Source: https://www.ic.gc.ca/

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!

Annual Consumer Insolvency Rates in Saskatchewan

(Per 1,000 Population Aged 18 Years and Older)

Saskatchewan
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Insolvency 3.1 2.7 2.2 2.2 2.4 2.7 3.6 3.7 4.0 4.1
Proposal 1.1 1.0 0.9 0.8 1.0 1.3 1.9 2.1 2.5 2.5
Regina – Moose Mountain
Insolvency 3.0 2.5 1.9 1.9 2.4 2.7 3.9 4.0 4.5 4.7
Proposal 1.2 1.2 1.0 0.9 1.1 1.5 2.5 2.7 3.2 3.2
Swift Current – Moose Jaw
Insolvency 3.2 2.5 2.3 2.6 2.4 2.5 3.0 2.7 3.2 3.2
Proposal 1.1 0.8 0.9 1.0 0.9 0.9 1.3 1.2 1.7 1.9
Saskatoon – Biggar
Insolvency 3.0 2.6 2.2 2.1 2.2 2.5 3.2 3.6 3.7 3.6
Proposal 1.0 0.9 0.9 0.8 1.0 1.3 1.6 1.8 2.3 2.2
Yorkton – Melville
Insolvency 3.1 2.9 2.2 2.1 2.2 2.4 3.2 3.1 3.3 3.4
Proposal 1.0 0.8 0.9 0.7 1.0 0.8 1.5 1.4 1.9 1.9
Prince Albert and Northern
Insolvency 3.4 3.2 2.7 2.5 2.6 3.3 4.1 4.3 4.4 4.4
Proposal 1.0 1.1 1.1 0.8 1.0 1.2 1.8 2.3 2.4 2.4

Source: https://www.ic.gc.ca/