Consumer proposal and income
Posted on January 29th, 2010
Question: I am considering making a consumer proposal, because the amount of debt that I have is just unmanageable. My home is worth about $350,000, with maybe $20,000 in equity. I have about $35,000 in credit card debt, and a $100,000 unsecured line of credit. I have three children and a non-income earning spouse, and I earn $130,000 per year. I am making minimum payments on credit cards and the LOC (which is interest-only) and I am always hugging the line every month. It’s very stressful, and I’m not getting ahead. What should I do?
Answer: Yes, a consumer proposal is a possible solution. However, the first step is to ensure that the consumer proposal will solve your problems.
You make a good salary, but you have a lot of debt, so in the past you have spent more than your income. It is therefore necessary to analyze your spending to make sure you can cut your expenses to the point where there is some money left over every month. Start by making a household budget, and work with your spouse to find areas to reduce spending.
Once your budget is under control, then a consumer proposal may be the correct answer. Contact a consumer proposal administrator for more information.
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Tags: Consumer Proposal, Proposal
Filed under Credit Card Services |