Question: I owe the following:
1.$17,500 credit cards.
2.$17,000 personal loan.
3.$3,700 for my computer
My yearly income totals roughly is $27,000.
My question is should i go the route of getting a debt consolidation loan (which is really hard for me to get one).
Or do a consumer proposal which in my option is better for me?

Answer: If your goal is to protect your credit score, a debt consolidation loan is your best option.  If you qualify and can use the loan to repay all of your debts, you will have a very high credit score.

Unfortunately, as you stated in your question, it is very hard to get a debt consolidation loan.  We are in a recession, so unless you have assets, a good job, and perhaps even a co-signer, it’s not easy to qualify for a loan.

For that reason a consumer proposal may be a better option.  In fact, if you don’t qualify for a loan, it may be your most logical option.

We suggest you start by using our free debt options calculator to determine the cost of each of your options.  Then, consult a consumer proposal administrator to review your options and determine which option is best for you.

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