The two questions that we must ask ourselves are:
Is my credit rating already affected?
Would I be able to obtain a loan today if I wanted?
All solutions to debt problems have advantages and disadvantages. For example, debt consolidation will not affect your credit rating, but you must be eligible for this type of loan and you will have to pay interest (average of 12%), which will significantly increase your monthly payment. A consumer proposal and a bankruptcy, on the other hand, will have an impact on your credit rating, but are sometimes the only alternatives that will allow you to balance your budget and quickly regain control of your finances by considerably reducing your debts. In certain circumstances, it is preferable to take these measures to get oneself out of debt, once and for all.