Life After a Consumer Proposal
In Quebec, when you have financial difficulties, you can file for a Consumer Proposal.
It reduces the total amount you have to repay your creditors and allows you to better manage the monthly payments.
A Consumer Proposal is indeed a solution for debt relief.
When you adhere to all the conditions you’ll receive a Certificate of Completion which makes you debt free.
However, this does not come without a price to pay.
Truly, you’re in a better position when you file for a Consumer Proposal than a bankruptcy.
Your assets will not be taken from you.
Instead, with a bankruptcy, you really feel like you are starting everything over again as some assets might be lost.
After you’ve completed your Consumer Proposal, the only evidence of financial difficulties will remain in your credit report.
What to do after a Consumer Proposal
Indeed, your credit score will be a reminder now and then of the troubles you went through.
Life does need to move on and if you desire to regain your financial well-being you have to do something.
The R7 rating remains on your credit report for three years after you’ve obtained your Certificate of Completion.
The best thing you can do after your Consumer Proposal is to rebuild your credit rating.
A good way to start is by applying for secured credit cards.
Such cards require that you deposit a certain amount of money into the card before using it and the amount deposited becomes your credit limit.
You cannot spend more than you credit limit.
If you are prompt with your payments on the credit card, it will steadily improve your credit rating.
With your secured credit card and prompt payment, that will open the gateway for other types of loans.
Focus on store cards that allow you to purchase items on credit with a repayment plan.
If you are earning a very good income and make your monthly payments, that strategy will improve your credit rating even when the Consumer Proposal is still visible on your credit report.
Getting Back to the way Things Were
You may remember how you could purchase anything and had no worries about money as long as you could get a payday loan or some other unsecured loans prior to your financial difficulties.
Life after a Consumer Proposal allows you to regain you financial freedom.
The experience you may have gone through filing for a Consumer Proposal and the counselling obtained certainly pays off and will make you more alert when handling money or your finances.
You’ll find that you’re more organized and many things that you probably did before your financial difficulties now seem needless.
The way things were prior to your Consumer Proposal may never be similar again after the Consumer Proposal.
However, with time and by gradually building your credit rating, you can regain a good financial standing.
Life After a Consumer Proposal – Conclusion
A consumer Proposal does disrupt your life financially.
However, after a Consumer Proposal, life is improved.
What a Consumer Proposal teaches is discipline when it comes to financial matters.
The fact of the matter is that, despite the experience you still need to make future plans even after a Consumer Proposal.
For example, it might be your desire to get on the property ladder, buy a car, etc.
That can only happen if you build your credit score.
Only strategic actions can help you regain a good credit rating.
A Consumer Proposal allows you to regain your financial health and be debt free.
The experience also allows you to better appreciate how to handle your finances.