We are now in week 5 of living/working in a pandemic world.  The Ontario government has currently extended the Declaration of Emergency until May 12th, which means many people continue to be unable to earn their regular income. The government has provided income relief through several programs such as the Canada Emergency Response Benefit, increased Canada Child Benefit and a special GST/HST credit payment. To some families, this may result in a net increase to their family income, to others, a substantial decrease.

Monthly expenses have changed

Monthly expenses have also changed significantly for many families.  Many children are not going to daycare, sports and extra-curricular events have ceased, hair is not being cut, and day-time hydro costs are reduced.  Alternatively, some essential workers are incurring additional daycare costs due to children not being in school, and all families have probably noticed some extra expenses for their children to learn at home.

If your monthly budget has changed significantly, try not to be discouraged.  You can only do your best.

Here are a couple of tips to try and help:

  • Continue to keep track of every penny you receive and spend in a day. You can’t make changes to where your money is being spent if you do not know where your money is going.
  • Make sure you are receiving all the additional benefits that you are entitled to. Even though Canada Revenue Agency extended the filing deadline, try to file on time to ensure you continue to receive benefits.
  • Save extra benefits received from the government for future expenses if not currently needed.
  • Contact telephone, cable and internet providers to see if you can reduce your monthly bill by reducing any services.
  • Avoid online shopping for unnecessary items.
  • Utilize the internet for free activities for your children and yourself. There is a live stream from the Toronto Zoo and many free exercise programs on YouTube.
  • Try and pay at least the minimum payment on any debt to maintain your credit rating.
  • Investigate the effect on credit rating and total long-term cost if you are deferring any mortgage payments.

Most importantly, reach out for help if you need it, whether it be from a family member, friend, or a community or social service (211ontario.ca). If a formal insolvency proceeding will provide you relief, Taylor Leibow Inc., Fresh Start Now is still here to help.

Stay well.

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)