Single woman with a debt load of $40,000 – How We Helped

Wednesday, August 5, 2015 - 14:53

Consumer Proposals, Money Management, Collection Agencies

I recently met with a woman in our Kitchener office who was struggling with her debt. She was a server at a restaurant and had gotten herself into $42,350 of unsecured debt, due to her lower income and credit mismanagement. She came to us looking for a fresh start.

How we helped:

In our initial meeting, we discussed her debt, as well as her assets, her income and her budget. 

After reviewing her finances, we determined that a consumer proposal was the best course of action for her. She received a significant amount of money in tips, and she was also looking for a new job which would end up paying her more money than she was currently making. As a result, her surplus income would have been an issue in bankruptcy. She preferred the fixed monthly payments that were offered by making a consumer proposal. As well, prior to filing she had given a significant sum of money to her son and didn't want that transaction to be an issue in her bankruptcy. She ended up paying $250/month to her creditors for 60 months (totaling $15,000). 

By filing a consumer proposal, she was able to:

  • eliminate her credit card debt
  • protect money that was transferred to her son
  • immediately stop all creditor action and interest charges

Where is she now?

She was able to pay her creditors the agreed upon amount which got her out of debt much sooner than if she would have tried to dig herself out on her own. She attended two mandatory credit counselling sessions that have helped her manage his finances going forward.

We can help you become debt-free too - contact us for a free consultation