A Consumer Proposal Cost Our Client $26,000 on $18,000 of Debt. Talk to Us First.

If you own your home and you're thinking about a consumer proposal, talk to a mortgage broker first. It could save you thousands in fees, keep money in your pocket every month, and protect your credit for years to come.

Here's a recent example of why.

What happened

We met a client who had already gone into a consumer proposal. They owed about $18,000.

The consumer proposal company charged them $26,000.

They ended up on the hook for more than they owed in the first place, and their credit took a major hit on top of it.

What we would have done

If they'd come to us first, we would have shown them a different option.

They owned a home with equity. We could have used that equity to pay off their debts, even the ones in collections or rated R9. And we wouldn't have just paid them off. We would have negotiated those balances down first, so they paid less than what was owing.

That means:

• No consumer proposal fees.

• Lower monthly payments, with everything rolled into one.

• Less paid overall, because collection balances can often be settled for less.

What a consumer proposal does to your credit

This is the part a lot of people don't hear until it's too late.

A consumer proposal stays on your credit report for years, even after it's discharged. During that time, it can be hard to get approved for much of anything. Even a basic credit card can be tough to get.

You get relief from the debt now, but you pay for it with your future borrowing.

What debt consolidation does instead

When we consolidate debts using home equity, credit scores usually start going up, and fast. Within one to two months, we often see a real improvement. I've seen scores jump 100 points within three months.

Every file is different, so results will vary. But the direction is the opposite of a consumer proposal. Instead of being stuck with a proposal on your record, you're working your way back to borrowing from banks and credit unions again.

Is a consumer proposal ever the right call?

Sometimes, yes. A consumer proposal is a real tool, and for some people it's the best option, especially if they don't own a home or don't have equity to work with.

But if you do own a home, you owe it to yourself to look at every option before you sign anything.

Before you sign, call us

If you're thinking about a consumer proposal, or someone has told you it's your only option, let's talk first. Collections and R9s don't automatically rule you out.

Every file is different, and we'll tell you honestly what's realistic. Call us at 587-900-0036 and let's look at yours.