4 steps to consider if you've lost your job due to COVID-19
1. See if you are eligible for the new federal emergency response benefitThis is an extremely challenging period for all Canadians, especially those who have had their income directly affected by COVID-19. To help reduce the financial burden on Canadians, the Government of Canada has stepped in with the new Canada Emergency Response Benefit (CERB). This taxable benefit is available to eligible Canadians who have been financially impacted by COVID-19. This includes workers who cannot contribute to Employment Insurance (EI), such as self-employed or contract workers. If you qualify, you could receive up to $2,000 a month for up to four months from the federal government. Visit the Government of Canada website for complete information on the Canada Emergency Response Benefit, including who is eligible and how you can apply.
2. Revisit your budget and cut back where you canIf you haven't created a budget yet, it's not too late to start. Begin by separating your non-discretionary monthly expenses (such as your mortgage, utility and car payments) from your discretionary costs (like your online shopping, entertainment and cable subscription). Compare the sum of the non-discretionary expenses with your anticipated cash flow or immediately available savings to determine the amount of residual funds available for those discretionary expenses. If your budget looks tight, start to cut back on the discretionary items as much as possible to prioritize your critical expenses. If you have a little more room to work with, put aside as much as you can in savings – just ensure that these funds are easily accessible should you need them immediately.
3. Consider streamlining your debt repayment by consolidating your loansPaying off your debt with new debt may seem counterintuitive, but it's a strategy that can help you manage interest accumulating across each of your independent loans, such as your credit cards or student debt. Consolidating your debt with a low-interest personal loan, may not only make it easier to manage your cash flow, but it can help streamline your finances overall by keeping your debt in one place. Visit the TD Personal Loan page to learn more.
4. Explore your debt payment deferral optionsWhen faced with loss of income, paying off debt such as your mortgage, credit card, student or auto loan – can become a major concern, especially during these unprecendented times. But depending on your situation, you may be able to access relief offerings now available to eligible Canadians, including TD mortgage and credit card payment deferrals. It's important to note that deferring payments like your mortgage means interest will be capitalized (i.e., added to the outstanding balance) on each payment due date, meaning you will pay more interest in the long run. But if deferring your debt payments is something you must consider, and your credit providers are offering relief measures due to COVID-19, start by prioritizing your debt payments from most-to-least critical. This will help you determine where your funds need to be directed to most. From there, contact each of your credit providers to determine if you qualify for their COVID-19 relief offers.
To help Canadians during this difficult time, TD is offering mortgage payment deferrals and credit card interest rate relief to eligible customers. If you are a TD customer experiencing financial hardship due to COVID-19, visit the TD COVID-19 Financial Relief page to learn about the financial relief options available through TD.
DISCLAIMER: This content discusses current topics of interest in a general and informational manner only and may not be appropriate in all circumstances. Please ensure that you seek advice personalized for your situation from the appropriate professional, consultant or subject matter expert on the topic of interest to you.
Brought to you by TD NewsRoom
If you're experiencing financial hardship during the COVID-19 pandemic, a mortgage payment deferral may provide some relief.
Here's what you should consider if Canada heads for a recession because of COVID-19.
If you’re concerned about the impact of COVID-19 on your finances, our quick tips may offer some prospective.
Stay up to date on the latest here
We're committed to keeping you informed