Woman on maternity leave and in debt – How We Helped

Tuesday, February 2, 2016 - 13:54

Consumer Proposals, Money Management, Government Debt

Maternity leave is a great privilege that we receive as Canadians, but many women on maternity leave (EI) feel the overwhelming financial stress of a reduced income. I recently met with a realtor who was on maternity leave and was struggling financially. She was finding it very difficult to manage her reduced income, especially since her household expenses had increased since the baby arrived. 

When I met her, she owed approximately $26,600 in government debt and credit card debt. After trying to dig herself out of debt, she realized that she couldn’t do it on her own and contacted us for help. 

How we helped:

In our initial meeting, we discussed her situation and addressed her concerns. We both agreed that making a consumer proposal was the best option for her. By making a consumer proposal, she would avoid surplus income issues with her high commission income potential and she would protect her professional realtor license.

Her consumer proposal required her to pay $150/month for 60 months, totaling $9,000.

By filing a consumer proposal, she was able to:

  • eliminate her government and credit card debt
  • keep her household furnishing and personal
  • immediately stop all creditor action and interest charges

Where is she now?

She was able to pay the $9,000 within the allotted 60 months. Since then, she has attended two mandatory credit counselling sessions that have helped her manage her growing household expenses going forward.