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Difference between Credit Counselling Loan and Consumer Proposal

What is the difference between a credit Counseling loan and a consumer proposal? Are they both R7 on the credit bureau?

Posted from: Ontario

One Response to “Difference between Credit Counselling Loan and Consumer Proposal”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

There is no difference when you look at impact on credit, the difference is in how the contract is set up and the cost associated to do so. With credit counseling the debt is typically paid in full and there are likely administration charges on top of the debt itself. With a bankruptcy you are afforded the ability to negotiate a settlement with the creditors, so depending on your financial circumstances you may be able to save a substantial amount of the principle.