If you’re looking to break free of personal debt once and for all, we can help. We provide debt and bankruptcy solutions that are life-changing and permanent, so you can erase debt from your life.
Our Life-Changing Debt Solutions are designed to permanently get you out of debt once and for all – so you can stop worrying and start living again.
Debt can be overwhelming. For that reason, our Licensed Insolvency Trustees are always here for you. let’s discuss the options available to you. Your debt-free future starts now.
The ongoing uncertainty and instability caused by the COVID-19 pandemic have many people concerned about how they’re going to weather the months ahead. You may be facing an unexpected job loss or reduction in hours. Your expenses have likely shifted significantly. And it can be difficult to make sense of all the different programs and services available — let alone whether you qualify.
Following are five tips to help you reduce your financial strain, connect with and take advantage of helpful resources, make the most informed decisions possible and regain control over your finances.
The impacts of social distancing are far reaching and have likely impacted your finances in numerous ways — for better and worse. Whether someone in your household has lost their job or you simply have fewer expenses right now, this is the time to sit down and optimize your budget for your current situation.
We have created a helpful
Budget Tracker spreadsheet to help you get started. There are also several great free apps available if you prefer to keep track of things on your phone.
Some factors to consider:
Managing outstanding debt is never a comfortable situation to be in — but the fear and uncertainty we’re dealing with right now can make it even worse. If you have some room in your budget to pay down your credit accounts, you’ll want to maximize the return on your repayment.
To do that, focus on paying down your
most expensive debts first. Often, this is the one with the highest interest rate; but it could also be the one with the highest balance.
Some tips to get you started:
The following sample table will help you visualize the process. If this person can afford to contribute $600.00 per month toward their debts, here’s how they would allocate those funds:
Remember, this process only works if you can afford to pay more than the minimum on all your outstanding debts. If you’re struggling to meet your monthly debt obligations, reach out to a Licensed Insolvency Trustee for a
Free Confidential Consultation to learn your options today.
With the financial turmoil and unprecedented job losses that have resulted from social distancing, many banks and lenders are offering payment deferrals on mortgages, loans, lines of credit and credit cards. These could be an immense help if you’ve experienced a significant income reduction. However, you’ll want to review all the terms and conditions carefully before you begin skipping or putting off payments.
Not all lenders are structuring these grace periods similarly, and many are doing so in a way that could have lasting negative impacts on your personal finances.
Best case scenario: Ideally, lenders will offer an interest free, penalty free grace period for any payment deferrals. This means that your debts will not increase over the months you’re not paying them and there will not be any negative impacts to your credit report.
Not great, but not bad: Some lenders will continue to charge interest on your outstanding debts over the deferral period — but will extend the timeframe of your loan rather than increasing the payment amount when you begin paying it again. This will avoid overburdening your budget with unaffordable payments later on.
Worst case scenario: Many lenders will agree to grant payment deferrals but continue to charge interest and late penalties or ‘convenience’ charges over the timeframe you’re not paying toward the debt(s). Rather than extending the timeframe of the debt and adding these costs to the end, they will increase your regular monthly payment to account for the added costs. This can quickly derail your budget when you resume paying your debts.
The Government of Canada has announced numerous
programs and incentives to help Canadians who have been financial impacted by the ongoing COVID-19 pandemic.
Accelerated access to Employment Insurance (EI) benefitsCanadian Emergency Response Benefit (CERB)Extended deadline for income tax filing and paymentIncreased Canada Child Benefit (CCB)Special Goods and Services Tax (GST) payment for low- and modest-income familiesTemporary payment suspension for Canada Student Loans and Canada Apprentice Loans
Many provincial governments have also announced subsides and support measures for affected residents. You can find more information by visiting your provincial government’s website.
The availability of programs and services is changing every day as the pandemic and its economic effects evolve. Continue to monitor the news and government websites to stay up to date about any measures that could potentially benefit you and your eligibility.
Debt is always risky. Even more with the level of uncertainty and rapid change that has come to define the COVID-19 pandemic. Yet, many people are planning to increase their borrowing right now. And this is something we advise against wherever possible.
Here are some common scenarios where people are increasing their debt loads — along with some ideas for what you can do instead:
Low rates will likely be here for a while. Focus on saving between six and nine months of living expenses and increasing your down payment until the job market and economy stabilize.
Essential shops and services will remain open throughout the pandemic and no major shortages have been reported. Take this opportunity to try new foods and brands if your preferred options are unavailable.
Cut any non-essential costs from your budget.
Take advantage of any government support programs you qualify for (e.g. EI, CERB, etc.).
Speak with a Licensed Insolvency Trustee about potential options to eliminate or reduce the strain debt is placing on your personal finances.
Our team of Licensed Insolvency Trustees will help you
explore the debt relief options available to you and
together we will find the solution that best fits your
situation. Set up your FREE, no obligation consultation
MNP is committed to protecting your
privacy. We promise to keep all of the information you share
with us confidential.
*310-DEBT doesn’t operate in MB, NW ON and QC.
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