I own a house in Windsor. Should I file a consumer proposal or get a second mortgage?
The answer is, it depends. If you can obtain a second mortgage at a low interest rate and pay off all of your debt in full that makes sense. However if you are unable to pay off your debts in full, a consumer proposal makes more sense.
I recently saw a couple in Windsor who were trying to decide what to do. A consumer proposal seemed the best alternative because a second mortgage would not allow them to pay off all of their debts. However, they decided to get a second mortgage and realized the next month that they couldn’t afford it and all of the rest of their debt. They then filed a consumer proposal to deal with their remaining unsecured creditors, plus they also have their mortgages to pay. However, if they have filed a consumer proposal initially their total monthly payments would have been lower. It’s important to do all of your homework first.
If you would like to review your situation, email a question.
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