Not making payments toward your debts can lead to serious consequences. The longer a debt goes unpaid, the more it grows as interest and late fees accumulate. You’ll also notice a gradual drop in your credit score as well.
However, being unemployed can make managing these debts go from difficult to impossible. That’s why we’ve prepared this article and filled it to the brim with expert advice and valuable resources. If you’re unemployed and in debt in Canada, keep reading to learn about ways to manage your finances and help your situation.
1 – Apply for Employment Insurance
The first thing you should do after losing your job is apply for Employment Insurance (EI). It is a federal financial assistance program, which means it’s available for every province.
When you receive your paycheque on pay day, you may notice a certain amount of what you make gets deducted. These deductions are how EI is funded.
EI is an essential resource that ensures temporary financial stability immediately after you lose your income. It is available to eligible workers who:
- Have lost their job through no fault of their own (e.g., layoffs, shortage of work),
- Are unable to work due to illness, pregnancy, or caring responsibilities,
- Are participating in approved training programs.
How long you can receive EI benefits varies. You should apply within at least 4 weeks after your last day of work to prevent losing the benefits you’re entitled to.
Apply for Employment Insurance.
2 – Consult with 4 Pillars About Your Debt Relief Options
If you’re consistently struggling to make payments, it’s definitely worth talking to a professional about what debt relief options you have that can make repayment easier.
You can book a free, confidential consultation with 4 Pillars to discuss viable debt relief options and how they work. Here’s what the process of working with 4 Pillars looks like:
- Our goal is to help you understand how each legal debt relief option will help you get out of debt. We’ll also explain the pros and cons that come with each option.
- In the process, you should have everything you need to make a decision about how you’ll start paying off your debts. We don’t make this decision for you, we leave it in your hands.
- We can connect you with the organizations that will help you start your debt relief journey. Whether you need a credit counsellor or licensed insolvency trustee, we work with Canada’s most reliable debt recovery specialists.
- Once you get started, you can opt into our expert-led financial literacy and money management education services. This education teaches you how to effectively manage your money and borrow money, preventing you from struggling with high debt in the future.
We have debt advocates available across Canada to help you with your debt situation.
If you’re not interested in speaking to a professional, we have various articles and resources that might help you understand your debt situation and repayment options better. Here are some of our most popular debt help articles:
- I Can’t Pay My Debt
- The 50 Best Ways to Get Out of Debt in Canada
- Is There a Government Approved Debt Relief Program in Ontario?
- Debt Options in Canada: Know the Sharks, Beat the Game
- How to Get Out of Debt and Effective Tips for Getting Your Finances Under Control
- Common Mistakes People Make Paying Off Debt and How to Avoid Them
3- Get Free Government Career Counselling and Support
Did you know that many provinces in Canada offer free government-funded job search support? It is a great resource if you’re having difficulty finding a new job. Being able to find a new source of income will allow you to start actively repaying your debts.
Through provincial career support programs, your province will connect you with a local career counsellor in your area, who can help you with:
- Job search assistance
- Resume and cover letter writing
- Job interview training
- Professional upskilling and reskilling
Sign Up for Free Career Support with Employment Ontario
Sign Up for Free Career Support with WorkBC
If you don’t see your province here, you can visit your province’s government website to see if they offer free government-funded career support.
4 – Apply for Income Assistance
If losing your job has made it significantly more difficult to afford basic necessities (housing, food, hydro), there are provincial income assistance programs that can help.
To be eligible for income assistance, you need to:
- Be a Canadian Citizen, Permanent Resident, or Refugee
- Live in the province you are applying for income assistance in
- Be 18 years or older
- Demonstrate serious financial need with low/no income
- Have explored other options for financial support
Eligibility for income assistance may vary from province to province.
Apply for Income Assistance in Ontario
Apply for Income Assistance in British Columbia
Apply for Income Assistance in Alberta
Apply for Income Assistance in NewFoundland
Apply for Income Assistance in Quebec
Apply for Income Assistance in Nova Scotia
Apply for Income Assistance in Prince Edward Island
Apply for Income Assistance in Saskatchewan
Apply for Income Assistance in New Brunswick
Apply for Income Assistance in Manitoba
Apply for Income Assistance in Yukon
Apply for Income Assistance in Nunavut
Apply for Income Assistance in Northwest Territories
5 – Use The Government’s Benefits Finder for More Support
The government recently released a “Benefits Finder” website module designed to make it easier to find government-funded benefits that you may be entitled to.
Click here to begin using the Benefits Finder. To filter your results, check off the boxes that are relevant to you before clicking the “find benefits” button.
Living without income is not easy, especially when you are in debt. Fortunately, there are various temporary and long-term resources available for support if you live in Canada.
