Declaring bankruptcy is a very difficult decision for an individual. It affects far more than just your credit rating. As an alternative to declaring bankruptcy, many Canadians turn to consumer proposals to deal with their debts.

A consumer proposal is when an individual enters into an agreement with their creditors to repay their debt on different terms rather than declare bankruptcy. While it is possible to pay a smaller amount in a lump sum, the most common agreement is payment of an agreed portion of your debt over a period time.

Tribecca is here to help those trying to pay back their consumer proposals early. Many don’t realize that paying back early is an option, and those that do are often short on the funds to do so. We have helped many people get back on the right track toward achieving their financial goals. Below are some common questions regarding consumer proposals:

Can you pay off a consumer proposal early?

Yes you can, and paying off a consumer proposal early is a great idea if you want to get an early fresh start and rebuild your credit. The advantage of a consumer proposal is that you avoid declaring bankruptcy and receiving the lowest credit score possible, but taking years to repay the debts still affects your rating, and most lenders won’t bother working with you in this situation. That’s where we come in.

Tribecca is willing to work side-by-side with you to help you get back on your feet. We have a common sense approach to lending to help you pay off your consumer proposal. Aside from the peace of mind that it brings, paying back your proposal also allows you to start rebuilding your credit much earlier and puts the past behind you.

What happens after a consumer proposal?

After your consumer proposal has been repaid you are released from your previous debts. Once you fulfill the terms of your deal, you will receive a certificate of full performance that can be submitted to credit reporting agencies. Once that has been done, your report will be updated and your rating will improve.

Personal loans to pay off consumer proposals

Many lenders will not offer credit while an individual is in a consumer proposal. At Tribecca Finance, we think outside of the box and offer personal loans to pay off consumer proposals.

Second mortgages to pay off consumer proposals

Your house and property is the most powerful financial tool in your arsenal. Using a second mortgage to pay off a consumer proposal is one of the easiest and most convenient ways to pay yours back early. You have worked hard and made your mortgage payments diligently, and this in turn has helped you build up equity. This simply means that you can now use your home to get a loan.

Secured loans in this way have the benefit of being much more flexible, since the lender feels safer loaning you the money. They also usually have lower interest rates. Tribecca offers second mortgages to Canadians trying to pay back their debts. We focus on the person, your current situation, and ability to repay far more than we concentrate on your credit history.

By taking a loan with us, you now have access to the capital necessary to pay your consumer proposal back immediately. You might even be able to pay off your debts in a lump sum and pay less money overall. When you couple that with getting a great deal on our side, you can see the benefits immediately. By using a second mortgage to pay off your debts, you can:

  • Get on with your life
  • Lower your monthly payments
  • Save your credit score and
  • Rebuild your credit after a consumer proposal

Most lenders will not want to get involved in helping you pay back your debts while you are in this situation. Tribecca, on the other hand, is here to help.

How do I rebuild my credit after a consumer proposal?

Even with an accepted deal from your creditors and timely repayment, your credit will still be harmed. With the rising importance of credit in terms of securing loans for homes, cars, and businesses, and even with obtaining employment, consumers need to be wary of maintaining a low credit score.

Rebuilding credit after a consumer proposal can be a long road, but you can get there faster with a little bit of help. The first thing you should do is begin to rebuild your credit by making timely payments. The advantage of getting a second mortgage to pay back your consumer proposal is now you can start rebuilding your credit immediately and get more favourable interest rates on future loans and mortgages.

Think of the second mortgage as a vehicle toward rebuilding your credit that accomplishes many goals at the same time. Not only do you pay back your proposal early, improve your credit, and gain peace of mind, you also now have an affordable loan that you can use to further improve your credit. If you are ready to get back on your feet and pay off your consumer proposal, Tribecca is here for you. Contact us today to find out how we can help.