In July 2025, Canada’s unemployment fee hovered round 6.9%, with youth unemployment reaching 14.6%. Two in 5 Canadians say they’re frightened somebody of their family might lose their job, the best degree of job loss anxiousness ever reported, in line with MNP. On the identical time, 42% of Canadians say cash has been their largest supply of stress this yr, and almost half are dropping sleep over it.
For those who’re in between jobs and frightened about the way to cowl your payments, defend your credit score, or determine what sort of assist is obtainable, you’ve come to the precise place. On this article, we’ll stroll you thru the way to prioritize funds, negotiate with collectors, and entry unemployment reduction packages so you possibly can preserve issues manageable whilst you seek for your subsequent alternative.
The primary 48 hours: Triage your funds
The primary few days after dropping your job can really feel overwhelming, however taking just a few easy steps may help you regain a way of management.
Begin by adjusting your present funds or making a bare-bones funds that covers solely necessities: housing, utilities, groceries, cellphone, web, transportation, and minimal debt funds. Consider any revenue you count on to have throughout this time, similar to severance, emergency financial savings, or Employment Insurance coverage (EI). This offers you a transparent image of what you want and the place you would possibly want to chop again.
Then, you’ll wish to prioritize your bills. Make housing your high precedence, which incorporates lease or mortgage and utilities, then add in primary meals prices and well being wants. Secured money owed (loans tied to belongings, similar to a car) come subsequent, adopted by unsecured ones like bank cards.
When you’ve acquired the necessities lined, you possibly can take a look at any non-essential prices that you could trim. “Prioritize housing, utilities, meals and transportation. If cash is tight, strive your finest to maintain secured money owed present, as it’s simpler to barter with unsecured ones,” suggests Mike Bergeron, Credit score Counselling Supervisor at Credit score Canada.
It might be tempting to depend on payday loans or high-interest credit score, however these can lure you in a cycle of debt. Safer options would possibly embody taking an installment mortgage from a financial institution or credit score union, speaking to a non-profit credit score counsellor about debt consolidation, or exploring hardship choices together with your lenders. Whereas not all money owed carry the identical threat, remember that lacking funds can result in added charges, injury to your credit score rating or collections.
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Chatting with collectors: When to succeed in out and what to say
For those who’re struggling to make funds, contact your collectors as quickly as doable. It might really feel uncomfortable, however reaching out early can open the door to choices that assist decrease your funds and defend your credit score. Many lenders supply hardship packages like decreased curiosity, decrease minimums, or cost deferrals—however they received’t supply them except you ask.
“Some of the widespread errors I see individuals make is avoiding their collectors after they lose their job,” says Bergeron. “The sooner you talk your scenario, the extra choices you’ll have. Most collectors would reasonably work with you than ship your account to collections.”
While you get in contact, be direct and sincere. You would say, “I’ve had a lack of revenue and wish to preserve my account in good standing. What hardship choices can be found?” Earlier than agreeing to something, ask: “Are you able to verify how this can have an effect on curiosity, charges, and my credit score report?” For those who’re provided a deferral or cost plan, make clear how lengthy it lasts, whether or not curiosity continues, and when common funds resume. All the time get the total settlement in writing. This helps keep away from surprises and offers you one thing to refer again to later.
In case your account has already gone to collections, know your rights. Collectors should comply with provincial legal guidelines and can’t harass or threaten you. You may ask them for particulars concerning the debt and any cost choices, identical to you’ll with a creditor. Keep calm, ask for every little thing in writing, and don’t really feel pressured to conform to something on the spot. Seek the advice of a credit score counsellor in case you need assistance coping with collections.
Accessible assist: Accessing authorities and non-profit sources
For those who’re between jobs, there are packages throughout Canada that may assist. Begin by making use of for EI as quickly as you cease working, even in case you haven’t acquired your Report of Employment but (processing can take just a few weeks). “Guarantee that you’ve got sufficient revenue coming in to assist your bills round the home, preserve a roof over your head, and preserve meals on the desk,” says Randolph Taylor, an authorized Credit score Counsellor with Credit score Canada. Every province additionally provides its personal emergency or revenue help packages which will assist with pressing wants like lease, utilities, or primary residing prices, relying in your scenario.
You may additionally be eligible for utility reduction packages, provided by many hydro and fuel suppliers throughout the nation, which might embody invoice deferrals, cost plans, or seasonal reductions. For assist with day-to-day necessities, meals banks, and group organizations can present groceries and provides with no price or judgment. These sources are designed to assist Canadians by way of momentary hardships like job loss.
For those who’re struggling to handle debt whereas unemployed, contemplate reaching out to a non-profit credit score counselling company like Credit score Canada without spending a dime one-on-one monetary teaching and overview your revenue, bills, and money owed to assist construct a sensible plan in your scenario. Credit score counsellors can stroll you thru choices like debt consolidation, contact collectors in your behalf, and supply instructional and budgeting sources.
Prioritizing funds: Which money owed to deal with first
When cash is tight, it’s necessary to give attention to the money owed that carry probably the most threat. Begin with secured money owed, like your mortgage, lease, or automotive mortgage. Since secured money owed are tied to an asset, lacking these might result in eviction, foreclosures, or dropping your car. For those who’re falling behind, contact your landlord or lender early to ask about deferrals, lease reduction packages, or adjusting your reimbursement plan.
