How a consumer proposal can help kickstart debt recovery

It's a common question asked by debtors; what is a consumer proposal and how can it help me?

Simply put, a consumer proposal is a formal process that enables debtors to consolidate or include multiple debt into one payment plan.

Usually the principal amount is reduced by as much as 70 per cent, and payments are interest free going forward for up to 60 months.

"It's a great process because it actually stops most garnishments and legal actions, even from the tax man," Charlie Peet, with 4 Pillars Consulting, explained.

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The consumer proposal can include credit cards, lines of credit, student and payday loans, and tax debt.

This process does show up on your credit report saying you have entered into a consolidation with your creditors, and it will reduce your credit score.

"However, it provides the foundation to rebuild going forward," he said.

Recovery time can be greatly reduced, especially when the consumer proposal is paired with 4 Pillars' proven strategies.

"Typically, we see positive results within 12 months and near full recovery within 36 months.

To learn more about how Charlie Peet can help you, visit debtfree.me.