The COVID-19 crisis has impacted the economy with a temporary shutdown of businesses and layoffs. Although piling debt is not ideal or easy to deal with at any given point, it has become even harder to manage your bills in these troubled times. With the help of some personal solutions, such as managing your bills and finances, cutting down expenses will help you cope with the debt in these tragic times.
Many banks have also made necessary changes to their lending rules during the pandemic. Managing debt will be challenging, but it is essential to keep yourself acquainted with all the up-to-date information regarding solutions offered by provincial and federal governments during COVID-19. Count on Campbell Saunders Ltd for debt help in Richmond and Vancouver. We have been providing solutions for financial problems for individuals, families, and businesses for the last 30 years.
Have a look at some of the ways to manage debt during coronavirus pandemic:
1. Apply for Help
Depending on your situation, determine what help you are eligible to get. Check for financial assistance resources such as employment insurance, rental assistance programs or Emergency Care Benefit programs. Research all the resources and submit your applications as soon as possible. The processing times might be longer due to the reduced hours of operation during this coronavirus pandemic.
2. Create an Emergency Budget
Though it is late to save for this pandemic, building an emergency fund will help you save on your monthly costs for major expenses, such as medical costs, food or housing. During the self-isolation, many expenses will be significantly less, including entertainment, gym memberships or eating out. Some tips to help build your emergency budget are:
Discuss with all members of your family to understand how you can reduce costs
Contact each service provider and review your monthly bills to understand how costs can be reduced
Put non-essential monthly subscriptions on hold
Ask utility providers for a flexible payment arrangement
3. Contact Creditors
Contact your creditors to understand what help they can provide. Loan extensions, reduced interest rates or revised terms can help you with your payment. Your creditors will look into your payment history and your credit behaviour to make an informed decision. Avoid using your credit card to amass a huge amount of supplies and groceries, putting yourself in debt. Also, check the creditor’s websites for any additional information on COVID-19 policies that can help you. Understand how your debt payments will be revised. Read all terms and conditions about skipping payment and consider the option that is best for you.
4. File for Personal Bankruptcy
If you do believe that you’re lacking in resources to pay your debt or file a proposal, there is also an option to file for bankruptcy. Bankruptcy can give you immediate protection from your creditors or any legal actions. Note that your credit report will have the bankruptcy note for six years and 14 years in case of any subsequent bankruptcy.
5. Seek Professional Consultation
Consider professional consultation if you are experiencing debt issues due to COVID -19. Licensed insolvency trustees will understand your financial situation and offer options that can help you repay your debt. Filing bankruptcy or a consumer proposal is not necessary. Depending on your financial situation, you will be given options to change your monthly debt repayment plan.
The key to managing debt is not acquiring more debt, rather focusing on reducing and getting rid of it. If you are overwhelmed with expenses or treating your savings as an emergency fund, get in touch with Campbell Saunders Ltd for a free consultation and debt help. We offer consumer proposal services to help you deal with your debt without going bankrupt. During these tough times, we are also available for virtual zoom or skype meetings.
Contact us today for a consultation regarding your financial problems and debt help in Richmond and Vancouver. Our team is here to help!