Since the COVID-19 pandemic hit, many Canadians have been out of work. Statistics Canada found that one-in-five Canadian businesses have laid off more than 80% of their staff.

As the unemployment numbers rise, Canadians have turned to federal assistance — employment insurance (EI) and the Canada Emergency Response Benefit (CERB).

Maclean’s reported that as of April 28, Service Canada had received 7.3 million applications through CERB. CERB gives Canadians up to $2,000 for a four-week period.

While this help is certainly better than nothing, it may not be enough.

For instance, even if a person receives the maximum CERB amount of $2,000 per month, their income pre-COVID-19 may have been higher. Statistics Canada reported that Canadians earned, an average of $4,383 per month at the start of 2019

What’s more, some people don’t qualify for CERB or EI yet they have still taken a hit in income. Global News reported that two in 10 Canadians are facing reduced pay.

If you’re struggling to make ends meet, you need to know how to cope.

A) Look at Where Your Money is Going

The first step is to assess where your income is going.

Rent and/or mortgage payments will be a bulk of the budget for many, plus groceries and utility bills. Include any automatic payments, such as funds that go directly to a savings account, to this total.

Break down how much each is costing you per month. You need to know this information so you can figure out the gap in your income.

B) Find Places to Cut Costs,

From here, find the places where you can cut costs. For many, this will mean looking for ways to save money on groceries and cutting out non-essential purchases.

Prioritize the payments that relate to your shelter, to your health, and your financial obligations (more on this in the next step).

C) Deal with Debt

According to Equifax Canada, the average debt per consumer reached $72,950 at the end of 2019.

Many Canadians carry high loads of credit card debt, lines of credit, loans, and monthly payments (such as paying off a new cell phone).

These payments can take up a significant chunk of your monthly budget. That might have been manageable pre-COVID-19 (or not — a survey from MNP found that 46% of Canadians were $200 or less away from insolvency). But even if it was manageable before, if you’ve taken a hit in income, it may not be manageable now.

The answer isn’t to ignore it – or to keep paying it, especially if you need that money for necessities such as shelter or food. Instead, you need to look at debt management options.

Filing for insolvency — bankruptcy or consumer proposal — is one option, but it’s not the only option. The best plan takes your whole financial situation into account and looks at the types of debt that you owe.

This is where a debt counsellor (like DebtCare Canada) comes in. We help you deal with your debts and make a plan to cope financially during COVID-19.

What to Do if You Can’t Apply for CERB Because You Haven’t Filed Taxes

There’s another common problem – you may qualify for CERB but can’t apply online through the CRA because you owe income tax from previous years or haven’t filed your returns.

DebtCare Canada can help you deal with back taxes once and for all so you can eliminate the stress and access emergency assistance. We provide access to one of the only programs that can resolve a CRA back tax problem.

Get Debt Help Today

If your income has taken a hit due to COVID-19, we can help you determine your best path forward.

DebtCare Canada is operating 100% remotely. Contact us today for a free consultation. Call or text 1-888-890-0888 or visit www.debtcare.ca for more information.