I recently met with a young lady in Barrie who was concerned as her student loan payments were falling behind and so were her credit cards and line of credit. The minimum payments alone were not being paid.
The young woman thought she had done all the right things; finished high school, went to university and graduated with honors. She had worked all through school to help pay her bills and at the end of school owed very little on her credit cards and line of credit.
Two years after graduation, she still cannot find a job in her field and instead has to work two part time jobs just make ends meet, and even then sometimes she misses monthly payments on her credit cards of which she had to use just to help pay rent at times.
We sat down and went over all of what she owes and everything she needs to payout. Sure enough she was running in a negative. I could tell she was very concerned as her finances were getting worse.
Although her student loan would still survive while doing a consumer proposal, as she had not being out of school for more then 7 years, there was a way I could reduce her debt load and monthly payment which would put her in a much better position until that dream job became available.
I proceeded to go over the consumer proposal option, and even after her consumer payment, her rent, basic cost of living, and continuing to pay the student loan, she now could breathe.