Many people find themselves dealing with a lot of debt. That debt can easily snowball with all the interest rates you have to pay.

If you are looking for an alternative to bankruptcy, a Consumer Proposal in Kamloops BC can be a good option. Bankruptcy tends to have a stronger impact on your credit record but you might find that a consumer proposal in Kamloops is more forgiving.

Here are some of the reasons why you might want to choose this option:

It helps reduce your debt while still being able to negotiate payment terms.

A consumer proposal in Kamloops does not completely eliminate your debt. However, you can pay a portion of it that you are capable of paying. With the help of an expert from Mike Wright & Associates Inc., you can negotiate paying 30% to 70% of your debts. Most banks will agree to this because they will get something.

This can be payable for up to five years so it’s less of a financial burden for you. This makes it easier to pay your debt while still having enough money for your everyday expenses.

It lends certain protection from your creditors.

Dealing with creditors can be very stressful. They can be pushy and can harass you on a daily basis. But once your consumer proposal has been approved, you don’t have to deal with them anymore. If a creditor still seizes your assets or gets your wages, you can take legal action.

It allows you to protect your assets.

Creditors can seize your assets such as your car or your home. Since a payment schedule has already been arranged, you can preserve your assets.
It allows you to get back on your feet faster.

It will still have an effect on your credit score but not as much as a bankruptcy. It usually stays on your record for three years after you have finished paying all of your debt. But that is shorter than when you file for bankruptcy. You can start rebuilding your credit score much sooner.

It can help reduce your stress.

When you are dealing with a mountain of debt, you have to worry about the interest rates. These interest rates can be a big financial burden and something many people worry about.
It’s better to deal with it right away through consumer proposals rather than prolong the agony.

How can you file for a consumer proposal? You need the help of a Licensed Insolvency Trustee. They will file and negotiate the terms of the repayment on your behalf.

Finding a reputable LIT that has a lot of experience with consumer proposals is important. You can go to Mike Wright & Associates Inc. for assistance with your consumer proposal.

Shane Taylor is the author of this article. To know more about About Debt Free BC financial services please visit our website: debtfreebc.ca