Consolidating debt prior to a Consumer Proposal
February 28th, 2007 by Questions
I have a number of credit cards and lines of credit. I owe about $55k in total. This amount built up steadily over several years.
I would like to make a consumer proposal, but I recently paid off a $10k line of credit at one bank with money I advanced from a card at another bank. I did it to take advantage of a 3.9% offer for transfers for six months offered by the credit card company. The line of credit I paid off was at 7.5% interest. Debt had been building up on the line of credit over the past several years due to decreased income.
Will the bank object if I had a card with them for years owing $0, and then all of a sudden owed them $10k a few months prior to my proposal?