Those who are living with debt that does not exceed $250,000 and who have a steady source of income are potentially excellent candidates for a consumer proposal. Filing a consumer proposal is one way that people who can’t pay back their creditors can find debt relief.
In a consumer proposal, the debtor and creditor come to an agreement that acknowledges that the debtor can’t pay back what they owe in full. Unsecured debt isn’t attached to physical assets that a creditor can easily take back, which makes consumer proposals a good alternative. The creditor gets back at least some of what they are owed (instead of nothing) and the debtor is freed from their obligations to the original debt.
Loans After a Consumer Proposal
If you’ve been reading a long and thinking that a consumer proposal could be right for you, then perhaps you’re also wondering about what kind of consequences it will have on your future. Are you wondering: Is a car loan after consumer proposal possible for me? You can get a car loan while in or just finishing a debt repayment plan, but you’ll need to apply through a private lender and be prepared to show your proposal documents and can ensure that your debt-to-income ratio is low.
How Does Credit Counselling Help?
Two major forms of debt relief that bankruptcy trustees administer are consumer proposals and bankruptcies. In both of these procedures, the insolvent party is required to attend credit counselling sessions. Credit counselling can open your eyes to new attitudes about money that you can then incorporate into your future plans as you move through debt relief.
What’s more, it can be the defining factor in whether or not you move forward in life with better financial habits. Car loans are an essential part of life for many people, regardless of their debt levels. Credit counseling can teach you how to rebuild good credit after and during a debt recovery payment plan.
One of the best things that you can do to get a good auto loan that you can afford is to be realistic about your needs and your budget. You’ll have to steer clear of shiny new cars and unnecessary luxury features, but it will be worth it to know that you’re working on re-building your financial profile.
Focusing on the Future
It’s possible to bounce back after a consumer proposal. After all, you’ve been given the chance to start fresh, so why not make the most of it? Budgeting for the future is going to be essential, especially as you navigate your new loans during a period of financial re-building.
Prepare some goals for yourself and plan out how you can manage your finances in order to achieve them. Assessing how your income compares to your expenses will help you set yourself up for long-term financial success.
Analyze your expenses by keeping track of where all your money goes for one month and figure out what makes up a fixed expense (rent, insurance, gas) compared to discretionary expenses (dinners, cable package, vacations). Knowing the categories of your spending can help you to see the big picture of where your money goes while also showing you what can by adjusted and by how much.