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Laid Off Or Out-Of-Work Due to COVID-19? Financial Options for Staying Afloat

These past couple weeks have been enormously difficult for many Canadians due to the outbreak of the novel coronavirus, COVID-19, and subsequent measures to “flatten the curve.”

While these undertakings are aimed to keep the public safe and reduce infection risk, there’s been an unfortunate side effect — many Canadians are now out of work.

In Barrie, ON, for instance, one restaurant employer told Barrie Today that they had to lay off 100 people, as Ontario restaurants have been mandated to temporarily stop dine-in service.

Whether you have been laid off by your employer or can’t work for another reason — such as needing to stay home to take care of children out of school — the results might be the same: money is tight right now, and it’s not known when the situation will be better.

What can you do to make ends meet, especially if you have bad credit or were already dealing with a lot of debt? Let’s review the options…

  1. Government of Canada Assistance

The Federal Government announced a large emergency relief package on March 18 of $82 billion. This is a good move and will provide a lot of needed assistance. However, we need to look at the facts of what’s included.

That $82 billion includes:

  • Emergency care benefit of up to $900 biweekly for up to 15 weeks.
  • An Emergency Support Benefit delivered through the CRA to provide up to $5 billion in support to workers who are not eligible for EI and who are facing unemployment.
  • A six-month, interest-free reprieve on student loan payments.
  • Moving the income tax deadline to June 1 and deferring owed return payments to August 31.
  • 10% wage subsidies for small businesses.
  • And more.

See the full details from the Government of Canada here: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html

These measures are meant to help Canadians facing hardship as a result of the COVID-19 outbreak. But they do not erase bill payments completely — read on for more about what this means.

  1. Bank of Canada Interest Rates

The Bank of Canada (BOC) lowered the Canadian interest rate to 1.25% on March 4, 2020 and cut it again in an emergency announcement on March 13, 2020 to 0.75%.

Another BOC announcement is scheduled for April 15, 2020, where the rate may be reduced further.

This can provide easier access to credit for both consumers and businesses and lower variable-rate debt payments, which is both positive and negative. On the one hand, this makes it easier to access more money and credit products.

However, on the other hand, if you don’t have a plan to pay that credit back, it could spell trouble down the line. This is what prompted the BOC to begin raising interest rates in the first place.

Learn more about the BOC decision: https://www.bankofcanada.ca/2020/03/bank-of-canada-lowers-overnight-rate-target-to-%C2%BE-percent/

The BOC has lowered interest rates substantially to assist qualified borrowers in extreme times like these.

  1. Same-Day Financing Solutions

Industry experts are already predicting that Canadians are going to have to make up costs from lost income and that it could be challenging when that happens.

If you are having trouble meeting your payments, you need a solution and a plan to stay ahead.

If you do need extra assistance (especially if you have bad credit or are self-employed), don’t fall for payday loans or fly-by-night lending operations.

Instead, look for reputable lenders who offer options to people with good credit, bad credit, self-employed, and everything in between.

For instance, at Prudent Financial, we offer equity loans, which means our loans are based on the equity in assets you already own — like a car or house. Our loans are all open and repayable at any time with no upfront fees.

In Conclusion…

This is a challenging time, but a necessary one for our public safety. However, if you are struggling financially rest assured that there is help available.

At Prudent Financial, we have secured loan options  that can help you deal with  debt that is weighing down your mortgage payments, cope with a layoff, plan for upcoming bills, and so fort.

We will continue to be here for you throughout this event. We are available remotely by phone, email, or online chat.

Reach out for a free consultation today before the situation gets worse. Call 1-888-852-7647 or visit https://www.prudentfinancial.net.

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