Lost Your Job With Debt? What to Do First in Canada
A first-week plan for Canadians who lose their job with a mortgage, loans or credit card debt: EI, payment deferrals, creditor calls and protecting your credit.
Lost Your Job With Debt? What to Do First in Canada
Losing your income with debt is stressful, but acting in the first two weeks protects your credit far better than waiting.
Week one
- Apply for Employment Insurance right away — don't wait for your Record of Employment. EI pays 55% of insurable earnings up to a weekly maximum.
- List every payment and its due date.
- Cut spending to essentials with the budget builder.
Call lenders before you miss a payment
Mortgage lenders can offer deferrals, skipped payments or a longer amortization. Card issuers and loan lenders sometimes reduce payments temporarily. These options are much easier to get before a missed payment. Also check whether your loans carry payment insurance.
Protect your credit
Pay at least the minimum on everything you can. A single 30-day late payment can stay on your report for about six years. See how negatives stay on your report.
If it won't be enough
A non-profit credit counsellor can set up a debt management plan; a Licensed Insolvency Trustee can explain consumer proposals. Both offer free first meetings.
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