Odds are you’re one of the millions of citizens in the United States who are trapped under mounds of debt. Statistics show that the credit card debt for the average household in the U.S. is $15,191. However, some people have lots of debt and others have none at all. If you’re one of the millions who do have debt, it’s important that you focus on finding the quickest and most effective path towards becoming debt free. Thankfully, a consumer proposal might be the path you’re looking for.
What Is A Consumer Proposal?
A consumer proposal is a formal agreement drawn up by both your creditors and yourself. It’s an agreement that many creditors accept in order to recoup as much of your debt as possible. At this point creditors understand that you’re unable to pay back all of the debt that you owe. As a result the settlement amount is often times drastically less than the total debt. With a consumer proposal agreement you can eliminate as much as 70% of the debt that you owe.
Why Not Bankruptcy?
Bankruptcy tends to be a very popular option for the millions of borrowers in debt. Unfortunately, there are a number of hurdles you’ll have to face before your debt can be cleared. For starters, more bankruptcy claims are denied by the courts than accepted. Second of all, if your claim is accepted you may still be left with debt. Bankruptcy mostly targets unsecured debt, which means that you may still get stuck with your secured debt. Bankruptcy also requires you to give up some of your property (i.e. car, house, miscellaneous valuables, etc.), which isn’t something too many people want to do. bankruptcy trustee can help you avoid this.
Consumer Proposal Advantages To Expect
For starters, overall it can be a lot cheaper to draw up a consumer proposal. Again, the settlement amount is usually drastically less than the total debt. Also, typical solution providers often demand that you pay a small fee for them to handle your case. However, with a consumer proposal service the initial consultation is free. This allows you to learn more about your situation and options without paying a dime.
Top-of-the-line service can also be expected with these consultation services. The federal government regulates these administrations, which means all administrators must be registered and trained. This also means that they’ll be much more knowledgeable and professional.
If you’d like more information about consumer proposal agreements, consider visiting http://www.afarber.com. There you’ll find out more information on the process, the advantages it provides, and why it’s much better than bankruptcy. Getting out of debt can be tricky, but working with professionals will make things much easier.