Having financial problems puts pressure on your relationships and your health. There are many ways to get out of this hole, but a consumer proposal is the best way to relieve yourself of all this stress.
A consumer proposal allows you to work with a licensed insolvency trustee (SAI) to write a proposal to offer to pay your creditors a percentage of what is owed to them and extend the period during which you have to repay your debts .
However, if you have filed a consumer proposal just before you have improved your finances due to a new job, bonus or salary increase, the first thing you want is is refunding your consumer proposal as soon as possible . But is it possible? Of course !
With a consumer proposal, you will not be penalized if you pay it back sooner, and that will not come with interest charges or penalties. In fact, you are generally encouraged to promptly repay your consumer proposal, without penalty or interest, so that you can get your Certificate of Full Performance and continue your life without debt.
Free ou as quickly as possible
Your creditors are legally bound by your consumer proposal if they choose to accept it. Therefore, if your financial situation improves (because you have, for example, found a new job or obtained a salary increase), they can not ask you for more money or raise the amount of your payments. More importantly, they will be even more advantageous if you make your payments faster.
To make room in your budget
As soon as you have finished paying for your consumer proposal, you will now be completely free of your debts. So, as soon as you have finished repaying it, you will be able to use this amount freed from your budget for other expenses or even better, put savings aside.
To improve your credit rating
When you file a consumer proposal, your credit rating will be a credit rating of R9 until you have finished paying it. A credit rating R9 means a debt placed for recovery or bankruptcy. Once you have finished paying for your consumer proposal, your credit rating will change from R9 to R7 for three years after you have paid in full. This means that if you repay your consumer proposal in 3 years, your credit rating will be affected for a total of 6 years. If you pay it back in one year, it will be for only 4 years. So, why not pay it back sooner and work on your credit as soon as possible?
To avoid a payment default
Your consumer proposal will be canceled if you are more than 3 months late on a payment. So, if you make advance payments, you are ensuring your financial security in case you need to skip some payments at a later date.
But what are the best ways to repay your consumer proposal faster?
There are many ways to refund your consumer proposal as soon as possible. You will need to speak to your trustee before attempting to do so, but you will find below some options:
- Increase the amount of your monthly payments.
- Increase the frequency of your payments (that is, instead of paying once a month, you can try to pay your consumer proposal twice a month).
- A lump sum payment. For example, if you received a bonus at work or a tax refund, put all this money towards your consumer proposal instead of spending it.
Whatever you choose to do, we are here to help you restore your financial stability so you can live a life without anxiety.