Updated May 20, 2020What impact will this have on the economy?
COVID-19 is having had a major impact on the world economy, causing stock markets to nosedive more steeply than at any point since the 2008 financial crisis. This is an unprecedented event on a global scale, but it’s important to remember that you’re not alone. Governments are working around the clock to find ways to provide economic support, and banks and businesses are making rapid adjustments to policies and penalties. What can I do to manage my finances through COVID-19?
Will my job be affected?
- Now is a good time to make a short-term budget and prepare for an unstable situation for the coming months.
- Consider payment deferrals, refinancing and other things you can do to plan ahead to manage your monthly payments.
- You can now verify if you payment deferral has been reported correctly on Borrowell's payment calendar.
- Building up emergency savings is always important. Anyone with low or no savings should try and cut back spending today in order to put funds aside, just in case their job and income are affected.
- While interest rates are falling, it’s not a good time to increase borrowing. Central banks are clearly worried about the threat of this epidemic growing, which means it’s time to save, not borrow.
- In particular, expensive debt such as credit card borrowing, should be avoided. However, if options are limited, look for cards with no-fee or low-interest. Find options for you here.
- Enroll in direct deposit with your employer, for those who haven’t already. That way, pay can be deposited directly into a bank account, rather than via paper cheque.
- Similarly, enroll in online banking in order to access finances and pay bills without having to visit a bank branch.
- Some people may want to explore freelance work that can be done remotely. Check out our list of 39 great sources that may help you find remote work, from graphic design to filling in surveys.
What financial support is available?
- Employees who can do their jobs from home may be in a more fortunate position than those who can’t. However, school and childcare closures are creating challenges, limiting parent’s ability to work remotely.
- If you have been laid off you can get a better understanding of Employment Insurance (EI) as well as Government Supports including Canada's Emergency Support Benefit (CERB).You can learn more about EI and how it works here.
The Bottom Line
- The Canadian government announced their economic response plan, read more here.
- Many companies are waiving late-fees or freezing monthly bill payments all together, including mortgages. Check your provider's websites, contact your bank or get in touch with your landlord and see what support or forgiveness they are offering.
- Tax filing deadlines have been moved. Check the new dates here. However, if you think you might get a tax refund (the majority of Canadians do), you might want to file your taxes sooner so you can get the refund as soon as possible. Get More Tips
Rest assured that Borrowell is here for you to check and monitor your credit anytime, as well as get advice, tips and tools to help you manage your finances. Our team is working from home, but that hasn’t impacted our ability to serve you.
If you're taking payment deferrals, or other forms of support it's important to keep an eye on your credit report so you can spot errors as soon as possible. If you aren't a member sign up in minutes and access your report anytime without it hurting your score.
It’s going to take time and effort to get through this challenge. But we’re going to get through it, together. In the meantime, stay healthy and safe.