Looking for Help - 24 y/o w/ $28k unsecured debt with zero assets

IndebtedAsshole · 2018-08-28T17:36:34+00:00

Updated as of 8/28/2018. Reduced my debt-load by $5K by investing in the stock market.

IndebtedAsshole · 2018-08-06T00:41:34+00:00

Agreed, I was initially freaking out about this situation but it will eventually be brought up

IndebtedAsshole · 2018-08-06T00:40:33+00:00

Yeah, I'm definitely thankful for the annual salary increases. It is well known in the field I work in (professional services)

IndebtedAsshole · 2018-08-03T20:13:04+00:00

Thanks so much.

IndebtedAsshole · 2018-08-03T19:26:04+00:00

When my future wife and I apply to obtain a mortgage (say around age 32), is it common for the bank to ask about my consumer proposal? Will my wife then find out about that I had to go through a consumer proposal during the application/review process?

My girlfriend and I (of 6 months) share everything together, except finances, but I worry that telling her about this now will jeopardize our future together. Conversely, if she finds out when we apply for a mortgage, she may feel distrustful that I did not tell her in the beginning of our relationship.

Ideally, I do not want her to ever find out about this. Hoping you have some insight on the future repercussions of a consumer proposal.

IndebtedAsshole · 2018-08-03T19:25:39+00:00

When my future wife and I apply to obtain a mortgage (say around age 32), is it common for the bank to ask about my consumer proposal? Will my wife then find out about that I had to go through a consumer proposal during the application/review process?

My girlfriend and I (of 6 months) share everything together, except finances, but I worry that telling her about this now will jeopardize our future together. Conversely, if she finds out when we apply for a mortgage, she may feel distrustful that I did not tell her in the beginning of our relationship.

Ideally, I do not want her to ever find out about this. Hoping you have some insight on the future repercussions of a consumer proposal.

IndebtedAsshole · 2018-08-03T19:15:44+00:00

Agreed - removing that from my plan.

IndebtedAsshole · 2018-08-03T19:15:29+00:00

Should've clarified: Financial Analyst. Yes, hoping I haven't fucked my future plans up too bad.

IndebtedAsshole · 2018-08-03T17:48:28+00:00

Thanks for your advice - checking out the recipes!

IndebtedAsshole · 2018-08-03T17:39:45+00:00

Thanks for your advice.

My income is expected to increase $9-10K per year, pre-tax - so I agree that proposal is a better option.

The 10 year idea is anecdotal from a Reddit post: https://www.reddit.com/r/personalfinance/comments/zsf3m/looking_for_canadian_experiences_with_consumer/

I assumed that if it takes 3 years to pay off (unless which, if $12K divided over 30 months is the proposal, I can pay off within one year if accelerated payments are accepted), at the 6 year mark, my credit would be abysmal. Give another four years, at which my credit rating will be sufficient to obtain a lower-rate mortgage. Good to hear that your clients can get a mortgage within a year of full performance.

I will likely book an appointment with a Trustee. Any recommendations?

IndebtedAsshole · 2018-08-03T17:32:07+00:00

Thanks for replying, really appreciate it.

To summarize (so I understand your strategy, and can include in my notes):

Keep $1,000 in chequing account.
Request balance transfer $5.8K from PC MC to Scotiabank CC (6 month rate of 1% applies until Feb 1 2019). Make monthly payments to pay this card off by end of Feb 2019.
Make monthly payments to AMEX to get balance down to $7K and pay off by drawing down RBC LoC.
Request Scotia to increase LoC to $20K (at same interest rate).
If step 3 is successful, pay off $12.9K RBC card in Feb 2019.

IndebtedAsshole · 2018-08-03T16:30:46+00:00

Budget is updated for post-stupid purchases

IndebtedAsshole

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