Our Guide To Personal Bankruptcy In Canada
September 12, 2020
4 Common Bad Spending Habits That You Need To Avoid
October 9, 2020
Nobody could have predicted that the year would turn out as it has. Plenty of people rang in the new year with hope and optimism. Most Canadians were planning to buy their dream homes, take family vacations, and buy other big-ticket items. Nowadays, most people are just struggling to get by.
Six months into the pandemic, people still aren’t sure how they will survive the rest of the year with financial obligations hanging over their heads. 49% of Canadians feel despondent about the outlook of the economy, according to a survey by the Angus Reid Institute (ARI). While the government provides some safety blankets, most people who have little-to-no savings and a bleak financial future may be feeling like there is no end in sight for their troubles.
For people who need help managing their debts, it can be a very hard pill to swallow. Even previously self-sufficient and self-reliant households are now facing the prospect of losing everything they worked hard for. Debt help may be necessary if the following signs are evident:
- Difficulty finding new employment
Recent surveys by ARI indicate that 45% of Canadian households have reported a loss of employment. With many sectors of the economy affected by the restrictions of the pandemic, the country may continue to see rising numbers of jobless individuals. Should a household have lost a significant source of income, they should seek assistance from a financial advisor on how they can defer or restructure their debt to avoid incurring new ones.
- There are no more resources to pay student loans
People who have just entered the workforce are the most vulnerable at this time since their lack of tenure makes them an easy target for cost-cutting measures. Without gainful employment, student loan debt can accumulate. As a safety net, the federal government has deferred the deadlines on the federal share student loans until the end of the third quarter of 2020. The Canadian government has provided detailed information here for other options for individuals who are still studying or who need emergency student benefits.
- Credit lines are maxed out
Those living paycheck to paycheck may be dependent on credit cards and personal loans to survive the past several months. While there still isn’t a clear ending to the ongoing crisis, using credit cards can be a slippery slope. Filing for insolvency can help mitigate some of this debt and create a repayment plan that won’t incur any additional obligations.
- Inability to pay utility bills
Having access to clean water and energy is essential to surviving the coming months. With many households missing large amounts of income, some utility companies create special repayment plans in light of the current circumstances. With the right resources, a family can take advantage of emergency assistance plans to get relief from utility bills without taking on more debt.
In conclusion
Dealing with the stress of debt can severely impact one’s health. Everyone is trying to fight to stay mentally, physically, and emotionally fit throughout this pandemic, but many still don’t know what to do in the face of mounting obligations. These signs are glaring red flags that action needs to be taken. Fortunately, with debt relief, there are still options available to most Canadians that can support them through these dark times and mitigate the dreary effects of the pandemic.
DebtHelpers.ca assists Canadians in resolving their financial challenges and to find debt relief. Send a message and find out how our team can help.