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.

2. 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.

3. 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.