I met with a divorced mother of three children. She works as a nurse in our local hospital and earns a respectful income.
Being a single mom her main goal was to make sure she provided for her children. She had, in the past, manageable debt that she was able to pay each month. The problem began when she went to a car dealership and purchased a 2011 vehicle that the dealership sold her for $39,000.
The “Black Book” value of the vehicle showed the automobile appraised, in clean condition, for $12,300. Her payments, with the financing, on the car came out to $964.00 per month. Realizing she owed a lot more on the vehicle than what it was worth and she could not afford the car payments, she was advised to come into our office and discuss her options.
We were able to work out a viable consumer proposal for her which alleviated her worry about the huge deficiency that was owed on the vehicle. She returned the financed vehicle, and the balance owing for the car was now part of the proposal.
She has purchased another vehicle where her monthly payments are $326 per month. She realizes now that she should have taken someone with her when buying the costly vehicle.
Had she done so, she may have avoided the whole problem–she may not have needed to file a consumer proposal at all.