Taz Rajan, community engagement partner at Bromwich+Smith, is photographed at her office in Calgary, Alta., Wednesday, Oct. 7, 2020.THE CANADIAN PRESS/Jeff McIntosh

Seek help early if you are struggling with debt as deferrals end, experts say

Many don’t know where to look for help if they are struggling with debt

As payment deferrals offered during the height of the pandemic come to an end and many Canadians remain out of work or underemployed, experts say if you think you need financial help, the sooner you seek it the better.

The Canada Emergency Response Benefit, which came to an end at the end of September, helped almost nine million Canadians weather the pandemic and Ottawa has announced the new Canada Recovery Benefit for the self-employed who won’t qualify for employment insurance.

But the government aid programs only go so far and only if you qualify, so as payment deferrals on mortgages, car loans and credit cards expire, the bills will start piling up.

Taz Rajan, community engagement partner at insolvency trustees Bromwich+Smith in Calgary, says if you find yourself ignoring or minimizing your situation that can be an early warning sign that you need to take action before it becomes a real problem.

“There’s been deferrals for a while so you haven’t really necessarily had to service all of your debt,” she said.

Other warning signs to watch for, she says, is if your anxiety is interfering your sleep or you are feeling distracted at work

“If you’re finding there’s more month than money or all of the money that comes into your account is going to service your debt, that is definitely a sign you want to reach out for help,” Rajan said.

While many Canadians have adjusted to working from home or returned to work since the lockdowns of the spring have eased, many people remain out of work or working fewer hours due to the pandemic.

Bankruptcy filings dropped in the spring as government aid programs kicked in and lenders offered deferral programs to help struggling Canadians, but as the crisis has continued, those deferral programs are now coming to an end and payments will need to resume.

Credit Counselling Canada is offering free financial health checkups to help Canadians assess where they stand.

“CERB helped many people stay afloat hoping for better times and the shift to EI and other programs like the CRB will be helpful, but the fact is a lot of Canadians are going to see less funds coming from those sources,” said Michelle Pommells, the association’s chief executive.

She said while many Canadians know what the financial warning signs are, many don’t know where to look for help if they are struggling with debt.

An online survey done for the association at the end of August found that 37 per cent had no idea where to turn when facing financial difficulty, while 23 per cent would pretend the problem doesn’t exist.

“Rather like compound interest, unfortunately debt just compounds and gets worse unless you deal with it, so burying your head in the sand is not the answer,” she said.

Pommells said non-profit credit counselling organizations can offer unbiased advice for those seeking help.

“A non-profit credit counsellor will sit down with you and explain all the options that are available to you,” she said.

Pommells suggested that as the crisis has dragged on, those helped by Ottawa’s aid programs have also likely been burning through savings and others sources of cash to help carry themselves through the summer and now those funds may be running out.

“Now is the time to reach out and recognize that the warning signs of debt are important, but they can only be addressed if people take action,” she said.

Rajan says there can be a lot of shame and stigma associated with debt, but being able to talk about it is important.

“It is about that normalizing the conversation, we haven’t gotten there yet, but that’s what we’re hoping to do,” she said.

Craig Wong, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusDebt

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Over the years, Janice Blackie-Goodine’s home in Summerland has featured elaborate Halloween displays and decorations each October. (File photo)
QUIZ: How much do you really know about Halloween?

Oct. 31 is a night of frights. How much do you know about Halloween customs and traditions?

Online sales are beginning to alter the traditional sales practices for real estate developments. (Contributed)
Embracing digital sales tactics in Okanagan housing market

Real estate industry’s resistance to online sales can’t last

Kalamalka Lake which connects Lake Country to Vernon and feeds into Okanagan Lake. (File photo)
Response sought to Okanagan Lake level management shortfalls

Water board adds support to Peachland council’s call to change how lake level is managed

A fundraising initiative has been set up to help Mirjana Komljenovic, who has been diagnosed with Hermansky Pudlak Syndome and requires $2,000 a month to cover the costs of her medication. (gofundme.com)
Fundraiser created to help Summerland woman with rare condition

Mirjana Komljenovic requires costly medication to treat Hermansky Pudlak Syndome

Mara Lake is one of the significant water resources across the Okanagan-Shuswap region that will fall under increasing sustainability pressure as the anticipated population growth for the region continues in this century. (File photo)
Okanagan Valley water supply sustainability reaching a critical point: Global expert

Global expert says Okanagan Basin Water Board offers sustainable path forward

Physical distancing signs are a common sight in B.C. stores and businesses. THE CANADIAN PRESS
272 more COVID-19 cases for B.C., outbreak at oil sands project

Three new health care outbreaks, three declared over

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

A rock slide is blocking one lane off the Trans-Canada Highway west of Sicamous. (Cindy Schedlosky/Facebook)
Rock slide closes one lane of Trans-Canada Highway near Sicamous

Single-lane alternating traffic is in effect.

(DiStefano Jaud Architecture)
Proposed development on Kelowna farmland raises red flags

Developer proposes gas station, car wash, liquor store, commercial buildings, in agricultural area

Vernon-North Okanagan police responded to a property dispute in the 11000 block of Westside Road Thursday, Oct. 29, 2020. (Google Maps)
Property dispute leads to police presence near Vernon

An altercation between two individuals prompted a police response to the Westside Road area

Hiawatha RV Park will be demolished starting in February, to make room for a new condo development. Residents have four months to leave. (Phil McLachlan - Capital News)
‘I don’t know what to do’; Kelowna RV park resident pleas for eviction extension

Hiawatha RV Park residents have four months to leave the neighbourhood

Titled “Dutch Underground - Laren 1944,” Mineke Spencer’s parents Johanna and Albert Jan Koeslag (centre) sit with their 13 children, who ranged in age from seven (Minike) to 28. Mineke is the little girl with the big white bow in the front, left, beside sister Marie, also with a white bow. (Contributed)
Fearless allies: Shuswap woman reflects on childhood in Dutch Resistance

Mineke Spencer was three-years-old when Germany invaded her home in the Netherlands

FILE - In this Jan. 23, 1987 file photo, actor Sean Connery holds a rose in his hand as he talks about his new movie “The Name of the Rose” at a news conference in London. Scottish actor Sean Connery, considered by many to have been the best James Bond, has died aged 90, according to an announcement from his family. (AP Photo/Gerald Penny, File)
Actor Sean Connery, the ‘original’ James Bond, dies at 90

Oscar-winner was knighted by Queen Elizabeth II in 2000

Several police vehicles were seen at the Sagmoen farm on Salmon River Road in Silver Creek on Thursday night, Oct. 29, 2020. (Martha Wickett-Salmon Arm Observer)
UPDATE: One person arrested, released following police presence at Sagmoen farm

RCMP were at Silver Creek property where remains of Vernon woman were found in 2017

Most Read