Paying my Consumer Proposal off sooner.
Are there any benefits to paying my perposal off sooner ? Will this shorten that time period that my credit rating is affected or will my credit rating still be affected for the full 7 years.
Posted from: Ontario
There are two benefits – first, you’re done with the monthly payment. We encourage you to save the money, but frankly you can do what you want with it… The second relates to your credit report. The fact that you filed a proposal stays on your report for up to three years from the date you pay it off. If you pay it off early then you start the three year clock sooner…
Just so you know, our average client pays off their consumer proposals 12 – 15 months early (based on 2,000 new proposals each year) so it is a very common thing to do.