Want to Pay my Consumer Proposal Fast: Is it Possible |
Posted: January 19, 2022 |
Experiencing financial problems puts a strain on your relationships and your health. There are many ways to get out of this hole, but a consumer proposal is the best way to relieve you of all that stress. A consumer proposal allows you to work with a Licensed Insolvency Trustee (LIT) to write a proposal to offer to pay your creditors a percentage of what is owed to them and to extend the time you must pay your debts. . However, if you filed a consumer proposal just before you experienced an improvement in your finances due to a new job, bonus, or pay raise, the first thing you'll want to do is to reimburse your consumer proposal as soon as possible . But is it possible? Sure ! With a consumer proposal, you won't be penalized for paying it off early, and it won't come with interest charges or penalties. In fact, you're generally encouraged to pay off your consumer proposal promptly, without penalty or interest, so you can get your certificate of full performance and go on with your life debt-free. Here's why you'll want to pay off your consumer proposal early: 1 - To free yourself as quickly as Possible Your creditors are legally bound by your consumer proposal if they choose to accept it. Therefore, if you’re financial situation improves (because you have, for example, found a new job or obtained a salary increase), they cannot ask you for more money or raise the amount of your payments. More importantly, they will only benefit more if you make your payments faster. 2. To be able to make room in your Budget As soon as you finish paying your consumer proposal, you will now be completely free of your debts. So, as soon as you have finished repaying it, you can use this amount freed from your budget for other expenses or even better, put savings aside. 3. To improve your Credit Rating When you file a consumer proposal, your credit score will be an R9 credit score until you finish paying it. An R9 credit rating signifies debt placed for collection or bankruptcy. Once you finish paying your consumer proposal, your credit rating will drop from R9 to R7 for three years after you pay it in full. This means that if you pay off your consumer proposal in 3 years, your credit rating will be affected for a total of 6 years. If you repay it in one year, it will be for only 4 years. So why not pay it off sooner and work on your credit ASAP? 4. To Avoid Payment Default Your consumer proposal will be canceled if you are more than 3 months late on a payment. So if you make prepayments, you provide financial security in case you need to skip a few payments at a later date. But what are the Best ways to repay your Consumer Proposal Faster There are many ways to repay your consumer proposal as soon as possible. You will need to speak to your trustee before attempting to do so, but below are some options:
Whatever you choose to do, we're here to help restore your financial stability so you can lead an anxiety-free life.
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