By Jasmin Brown, BDO First Call Debt Solutions

BDO First Call Debt Solutions

What should you do if you can no longer keep up with your bill payments?

Apr 23, 2020 | 9:41 AM

The further we get into this period of uncertainty brought on by the COVID-19 pandemic, the more concerned many Canadians become about their financial situation.

Now more than ever, those who are struggling to cover everyday expenses, keep up with bill payments and manage their debt need some relief.

Very few Canadians think the worst is over, according to a recent Angus Reid online survey.

Almost nine-in-10 respondents predict that the economic situation in Canada is going to worsen. About one-in-four admit they are in bad or terrible shape financially because of COVID-19; and 45 per cent of households say they have lost work or income.

The good news is the response from governments, businesses and financial institutions has been quick. The CRA has extended 2019 filing and payment deadlines, many lenders are allowing clients to defer mortgage payments and the federal government has introduced the Canada Emergency Response Benefit. You can learn more about the assistance available from the federal government, financial institutions and others on the BDO Debt Solutions website.

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However, even when you have tapped into all of the financial assistance mentioned above, what happens when you still cannot keep up with your bills or manage your growing debt? There is additional assistance available, along with solutions and debt relief options that will help relieve your worry.

What if I can’t keep up with my utility bill payments?

Many utility companies are allowing customers to defer payments if they have been affected by coronavirus or have experienced job loss. SaskPower is offering flexible payment arrangements and will not be disconnecting residential customers for non-payment. For more information, contact SaskPower directly.

Can I negotiate with my credit card provider?

It’s best to call your bank or credit card provider directly if you are having difficulty making your minimum payments. Canada’s six big banks have committed to reducing interest rates, deferring payments and lowering minimum payments for their customers who are experiencing hardship.

I’m concerned about my debt.

If you are relying on credit to weather this uncertain time and your debt load is increasing more quickly than you anticipated, don’t wait to seek help. There are solutions. A Licensed Insolvency Trustee (LIT) will review your situation and explain available debt repayment or debt relief options.

If you have reached the point where your debt is overwhelming, a BDO Licensed Insolvency Trustee can negotiate with your creditors to reduce the amount you owe. This debt relief option, called a consumer proposal, lets you repay a portion of your debt, while allowing you to keep your assets. Taking the necessary steps now to find a debt solution may help you avoid filing for bankruptcy.

In these unprecedented times, many in our province are fighting to stay financially healthy. As we all try to find the best path through this crisis, there is no shame in seeking help. If you’re missing bill payments and falling behind on your debt obligations, the sooner you find a solution the better.

Have your finances been affected by COVID-19? Find tools, resources and debt advice that will help you weather the crisis on our Twitter and Facebook.