Yukon Consumer Proposal
Yukon residents are feeling the squeeze of economic pressures as strongly as other Canadians, with many turning to various forms of consumer debt.
Yukon residents have been handling their consumer debt quite well. Delinquency rates are low, which means that most people are paying their bills on time and can handle the minimum monthly payments that their debt requires. Most forms of consumer debt, including car loans, home-secured lines of credit, and credit cards, have a delinquency rate of well under 0.5 percent. In other words. less than half a percent are failing to pay their minimum payments for a period of three months or longer.
If there is a dark lining in any of this, it is that consumer debt is always risky. The higher average interest rates charged on this debt means that it takes longer than most people expect to escape it if they pay only the minimum amount due each month. Moreover, some borrow to the point where they have no reasonable chance of paying it all off.
Are you finding yourself in over your head with consumer debt? If so, then you may want to consider a debt solution such as the consumer proposal, a powerful debt relief strategy you can use to rid yourself of your consumer debt.
Understanding the Yukon Consumer Proposal
A consumer proposal is a binding legal agreement that residents in the Yukon use to get out of debt without having to pay back the entirety of what they owe. You may be familiar with debt settlement in Canada, a process in which creditors agree to settle debts for less than what is actually owed and to lower the interest rates they charge their debtors. A consumer proposal in the Yukon is similar, but it is a more formal agreement. In fact, it is a legal contract that you must draw up with the help of a licensed bankruptcy trustee.
As long as creditors representing a simple majority of your debt (51 percent) agree to the consumer proposal, all of your creditors must abide by its terms. This is especially beneficial in cases where certain creditors are absolutely refusing to reduce the debt you owe them or your interest rate. A debt settlement will not force their hand, but a binding consumer proposal will.
Is a Yukon Consumer Proposal Right for Me?
If you have a high level of consumer debt (up to $250,000; $500,000 for married couples), then a consumer proposal may be the best choice for you. If your debt is less than $10,000, a consumer proposal is probably too drastic an option and you might be better served with credit counselling or debt settlement. With such a large amount of debt, a consumer proposal that binds all your creditors to an agreement is a great way to make real headway in paying off your debt. You should also know that a consumer proposal has the same seven-year negative impact on your credit that a bankruptcy does.
Learn More about a Consumer Proposal in the Yukon
When you want to know more about debt solutions such as the consumer proposal, Yukon residents can get the information they need. Fill out the Canadian debt relief form for more information on the consumer proposal and how other debt solutions may be a better choice for you.