4 Pillars Helps You Decide Between Debt Management Plans and Consumer Proposals

If you’re trying to avoid bankruptcy, the good news is that Canada offers several other solutions to help you get out of debt without too much financial strain. When you meet with 4 Pillars debt consultants in Victoria, we will discuss the various options available and help you make the smartest decisions for your financial future. The following will explain the differences between debt management plans and consumer proposals.

Debt Management Programs

If you’re more concerned about making affordable payments than the total amount of your debt, debt management programs can be the ideal solution to help you get out of debt as smoothly as possible. Our 4 Pillars debt consultant in Victoria will meet with you and go over your current list of debts to determine which ones qualify for the program and whether you should choose this option to meet your needs. We will then help you create a debt management plan that will ensure you have affordable payments with lower interest, allowing you to pay off your debts more quickly with little impact on your credit score.

Consumer Proposals

Canada now offers consumer proposals, which is a better alternative to bankruptcy for many individuals. During this process, you will work with an LIT recommended by our 4 Pillars debt consultants to develop a low payment plan you will follow for five years. At the end of the five years, any remaining debt is forgiven. One of the most important things to remember about this option is that it only applies to unsecured debt. You can’t use it to clear auto loans, mortgages, or other secured loans. However, if you’re interested in paying down your credit cards, a consumer proposal can be the ideal solution.

If you’re ready to discuss your debt management options, contact us to schedule an appointment with our 4 Pillars debt consultants in Victoria.