Are you getting collection calls day and night? Are the interest charges on your credit card debt out of control, with no end in sight? A consumer proposal is an insolvency process similar to bankruptcy that protects your assets and provides debt relief. While you agree to make fixed monthly payments for a period of up to five years to your unsecured creditors, there are several ways you benefit.
A bankruptcy trustee, now known as a Licensed Insolvency Trustee, is the only professional who can file and manage your consumer proposal. Get in touch with a bankruptcy trustee near you if you’re struggling with collection calls and interest charges.
There are several ways that a consumer proposal can help you:
• Stops interest charges from accumulating
• Stops collection calls and other legal actions
• May provide debt relief
Because every case is different, talk to a bankruptcy trustee like David Sklar & Associates to find out specifically how a consumer proposal could apply to you. A consumer proposal can get you out of debt faster and relieve stressing factors like collection calls.
Interest charges on credit card debt can quickly multiply the initial loan if you’re not paying in full. The average credit card debt among Americans between the ages of 18 and 65 is $4,717. According to Time, if you applied the average interest rate of 15%, the minimum monthly payment would be $189. Paying just the minimum, it would take 10 years to pay off the original $4,717, and the total debt would wind up equaling $22,869; that’s over 5 times the original loan!
Stopping interest payments on your credit card debt and other types of unsecured debts could save you thousands of dollars in the long run. One of the things you should learn about consumer proposals is that they stop interest from accumulating on the debts covered by the agreement. Interest charges can keep you in debt indefinitely. A consumer proposal exists as a tool to provide debt relief so that you can start over and start saving again.
When it comes to collection calls, a consumer proposal will provide instant relief from the day you file. Collection calls can be stressful. You can wind up getting calls at work or when you’re at home trying to relax, or even get visits from collection agents. Their goal is to pressure you into paying debts. Living with collection calls, it can be hard to forget that you owe money. Collection calls can affect your job performance and your health.
In addition to stopping collection calls a consumer proposal will also stop other legal actions taken against you by collection agencies, such as a garnish on your wages. Wage garnishments can prevent you from meeting other expenses like your rent, mortgage, or daily living expenses. A consumer proposal is a fairer way to repay your creditors for both you and your creditors. Speak with a bankruptcy trustee today and stop interest charges and collection calls.