Consumer proposal calculator: how much does a consumer proposal cost?
Consumer proposal calculator – is there really such a thing? How much does a consumer proposal cost? This will depend on a number for factors:
- Your assets
- How much debt you owe
- Your monthly net income
- The number of dependents in your household (i.e., spouse and children)
- Your spouse’s monthly net income
- Whether your not you’ve previously file for personal bankruptcy
How these factors determine the cost of a consumer proposal is too lengthy to explain at the present time.
However, if you are single, have no assets and never previously filed for bankruptcy, we can provide a rough guide of what a consumer proposal would cost you:
|How much debt do you have?||What will be the cost of your consumer proposal?|
|Debt is less than $12,000||$120 per month for 60 months ($7,200)|
|Debt is between $12,000 - $18,000||$150 per month for 60 months ($9,000)|
|Debt is between $18,000 - $21,000||$180 per month for 60 months ($10,800)|
|Debt is between $22,000 - $24,000||$200 per month for 60 months ($12,000)|
|Debt is between $24,000 - $30,000||$250 per month for 60 months ($15,000)|
|Over $30,000||50% of the amount you owe, paid over 60 months|
Again, we must stress that these our rough estimates. How much you will be paying in your consumer proposal will depend on your own individual circumstances and the advice of your Licensed Insolvency Trustee.
Consumer proposal calculator: The cost of doing nothing is interest payments
Of course, you have the option of continuing to pay your debts on your own. However, the cost of doing nothing is the interest you will be paying on that debt as you pay it down.
Below is a handy calculator in which you can enter: (1) your credit card debt; (2) the annual interest rate on that debt; and (3) your current monthly payment.
Let’s say that you had $30,000.00 in credit card debt at an annual interest rate of 18% and you were making payments of $500.00 per month to pay it off.
Inputting these numbers into the calculator, it would take you 155 months (or 13 years) to be debt free. You would pay a total of $77,327.90, comprised of the original $30,000.00 loan balance and $47,327.90 in interest.
Clearly, there must be a better alternative to you than paying thousands of dollars of interest over several years. This is why consumer proposals exist – to help individuals like you who are drowning in debt.