Should You File a Consumer Proposal or Opt for a Debt Management Plan?

Consumer Proposal or a Debt Management Plan: Which is Better for Me?

When it comes to debt, there are a couple of different approaches to handling it properly.

Two proven methods include consumer proposals and debt management plans.

While they do have a few similarities, they are different tactics meant for different situations.

This breakdown is meant to help you better understand which of these approaches applies best to your personal situation.

Controlling your debt is a personal matter that requires diligence paired with a feasible approach.

Consider these two options while keeping in mind the following.


  • Debt management plans and consumer proposals alike both require you to issue payments over a negotiated set of time. Your creditors receive funds and you get breathing room to arrange your finances.
  • Both of these options put together your unsecured debt. This enables you to only have to issue a single payment per period. By combining multiple debts, you save substantially in interest over the term of payment.
  • Since both approaches to financial management affect your credit report in the same way, you don’t have to put as much weight on this result.


  • The administrating parties are different. Consumer proposals are governed by Licensed Insolvency Trustees whereas debt management arrangements generally operate by a credit counsellor.
  • Debt management means you must pay the amount owing in full – without further interest. With consumer proposals, you can often negotiate a smaller payment amount.
  • Consumer proposals arrest wage garnishing or other collection proceedings provided it is an agreed-on term.
  • Tax debt is more likely to be considered in a consumer proposal; though, sometimes, it can occur with debt management as well.

Professional Advice

If you are seriously looking at managing your finances, consider speaking to a credit counsellor to receive confidential, objective advice.

They can steer you in the right direction and help you choose between debt management and consumer proposals.

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