Coronavirus is still in full speed spreading it all over the world. People are confined in their respective homes. Millions are infected and thousands die every day and in some places funeral homes run out of coffins and urns (for ashes of those who were cremated).
As a consequence global economy collapse as businesses are closed except for essential businesses. Thus, millions are unemployed, though they receive unemployment insurance money, but the amount is not enough to cover all their living expenses.
If you are one of those unemployed, the question is how are you going to manage your finances that would not adversely affect your credit ratings (credit score), should you default your payments on your mortgage, house rent, credit cards, loans, and other financial obligations?
The governments (Federal and Provincial) being aware of the financial difficulties of those who were laid off from their works, designed programs to help those who are adversely affected. Some of these programs:
- Mortgage Payment Deferrals. This is to allow you not to pay your monthly mortgage payment during this time of emergency. To avail of this program you have to apply direct to the financial institution that holds your mortgage.
- Auto Loan Payment deferrals. It is like the Mortgage Payment Deferrals. You have to apply direct to the financial institution that holds your car loan.
- Credit Card Payment. You have to communicate to the financial institution that issued you your credit card and request for payment deferrals. You may also ask to reduce interest rate.
- House/apartment rent. You have to ask your landlord for rental deferrals.
For details of the above programs, visit governments of Ontario and Canada websites.
For your other financial obligations from creditors not covered by the above-mentioned programs, you can do the same. Communicate with your creditors and ask for Payment Deferrals. Usually, they would agree. To make it official, you communicate with them in writing and keep a copy for your file.