May 8, 2023
Consumer Proposal Auto Loans
Many Canadians take a consumer proposal as an option opposed to declaring bankruptcy. Entering into a consumer proposal allows a person to restructure their debt in such a way that they will be able to better pay them down.
A consumer proposal is a legal agreement developed by a bankruptcy trustee to arrange payment to your creditors. This alternative can allow an individual to lower payments and eliminate any personal debt within five years. A consumer proposal is a great opportunity for those in a less than perfect financial situation.
Before entering into a consumer proposal, it is important to determine that it is the right choice for you. In order to effectively resolve your debt, you must have a stable income in order to make monthly payments and pay the associated fees. If you miss more than two of your consumer proposal payments, it may be necessary to file for bankruptcy. For those whose majority of debt comes from student loans, this option may not be ideal. Student debt can only be counted if you have been finished with your schooling for over 7 years. While a consumer proposal is great opportunity for many, it is not always right for everyone so be sure to do the proper research to ensure you are making the right choice.
There are many implications to a persons’ credit rating profile when choosing a consumer proposal, causing some to worry about any future repercussions. However, it by no means destroys your chances for vehicle financing.
Having reliable transportation is vital to being able to get to work and ultimately stay employed. Many lenders are allowing customers who have taken on a consumer proposal to obtain financing on vehicles. There will typically be stricter guidelines and they will require a dealership to help you find a vehicle that fits the criteria.
Ready for a new car? Regardless of your credit score, Canada Drives can help you get pre-approved for a car loan through our fast, easy, and secure online application. Apply today!