A DMP is a service offered by non-profit credit counselling agencies like the CCS, which will negotiate with your creditors a lower interest rate on your debt and consolidate all your credit card payments into a single, affordable monthly payment.
The plan may cost you a small fee, depending on your income level and what you can afford. A consumer proposal, on the other hand, is a legal process that is only available through a licensed insolvency trustee. While a DMP can only lower your interest rate, a consumer proposal, if accepted by your creditors and the courts, can drastically cut down the principal you have to repay. Hoyes said in his practice, borrowers who successfully proceed with a consumer proposal typically see the amount they owe reduced to one-third of the original debt.
Like a DMP, a consumer proposal will also consolidate your debts into a single monthly payment, but that will also include fees and taxes.
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Both a DMP and a consumer proposal will affect your credit record. For a consumer proposal, it will take three years, according to Hoyes. More Weekly Flyers. Want to discuss? Please read our Commenting Policy first.
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Then review what your current withholding is. You don't have to wait until the new W-4 is available to update your withholding: "You can go into your old, existing form and have your HR department update it even before the new form is ready.
It's good practice to review your withholding every year, says Walser, but especially this year. Like this story?
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