The financial impact of the coronavirus pandemic on Canadians has been staggering. Business shutdown and unexpected layoffs and lockdowns have caused many people to have low income with limited variation in debt and essential expenses. These financial circumstances have become dire for most Canadians, resulting in many people concerned about their finances. For this reason, it is recommended to seek debt solutions or debt management options from PersonalBanker.
Here are five tips to manage debt during the coronavirus pandemic.
1. Create and implement an emergency budget
Though it is recommended to have an emergency fund for any rainy day, COVID-19’s quick onslaught has left many people unprepared for the depth of its money-related consequences. That said, it is not too late to create and implement a solid budget based on your current income and expected changes in your monthly bills.
Sit down with your loved ones and discuss various ways to lessen expenses and save cash. Also, consult with the debt management experts at PersonalBanker to learn multiple debt solutions and create a well-thought-out to respond to debts during the coronavirus pandemic.
2. Apply for financial assistance or relief programs you are eligible for
The thought of losing any amount of income is really frightening, particularly during the uncertainty created by the pandemic. As the pandemic crisis continues to evolve, the provincial government, federal government, and different organizations have rolled out various relief programs to help relieve part of Canadians’ financial burden.
Note that financial help can come from employment insurance, provincial and municipal rental assistant programs for tenants, extended benefits at work, the Emergency Care Program, and other available programs. There is so much information regarding these programs on various government websites, and it is easy to find the specific relief programs you are eligible for. It’s important to mention that these programs may not be debt solutions directly, but they free up some cash to pay your debt down.
3. Seek financial help from your bank
Most of Canada’s major financial institutions have implemented various changes to their lending rules to help their clients in response to the financial crisis created by the COVID-19 pandemic. These changes are implemented to help soften the financial effect for Canadians experiencing loss of income and various businesses experiencing losses.
Mortgage payment deferrals, loan extensions, revised terms, skipping payments, and reduced interest rates are some of the options your lender may be willing to consider. So, contact your credit union or bank for detailed information about these lending policies. When possible, use deferred payments to create and implement emergency savings plans for the future. This is among the effective debt solutions and debt management options you may want to explore.
4. Seek debt solutions advice if you’re uncertain
There’s no shame in asking for help regarding debt solutions and debt management. However, if you’re experiencing looming debt issues due to the pandemic or other circumstances, it is in your best interest to seek professional help. The credit counselors at PersonalBanker can offer customized advice to consolidate your debts into a single, affordable payment. These counselors also shed more light on various debt solutions and debt management options.
The financial impact of the pandemic is widespread, affecting people across the country. Suppose you are experiencing financial uncertainty and struggling with debt. In that case, the financial experts at PersonalBanker can help you plan effectively and address your debt issue before it gets out of control.