Consumer Proposal

A consumer proposal allows you to Reduce And Consolidate your debt without paying any interest.

Debt Consolidation

Debt consolidation is a solution that involves combining many different debt obligations into one payment.

Not all debt consolidation options are created equal.

We compare below the three possible consolidation options.

1. Consumer Proposal

A consumer proposal is the only debt consolidation option that allows you to discount the amount of debt you need to repay, sometimes by up to 75%.

You pay the remaining balance, say 25%, by way of one monthly payment.

You don’t pay any interest.

To learn more about this option, click on What is a Consumer Proposal.

2. Debt Management Program (“DMP’)

A debt management program consolidates your debts into one monthly payment and reduces or stops interest charges. There is no way to discount your debt under a DMP, you must to pay 100% of what you owe. In most cases, you pay a 10% administration fee.

3. Consolidation Loan

This involves obtaining a bank loan to payout existing credit card debts. Interest rates on personal loans are lower than what is charged by credit card companies. Depending on your financial situation, you may or may not qualify for a consolidation loan.


To illustrate the difference between the three consolidation options, let’s compare the results for an individual trying to consolidate credit card debts totaling $30,000.


Discount Interest
Rate Paid
Total Paid Monthly Pmts over
3 years
Consumer Proposal 70% 0% 0 9,000 250.00
DMP 0% 0% 10% 33,000 916.00
Consolidation Loan 0% 10% 0 36,180 1,005.00

These amounts are provided to illustrate purposes only to highlight major differences between consolidation options. Actual results are subject to various approval processes and may vary.

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