CALGARY

Credit agency advises Canadians to put together emergency plan for finances

CTVNewsCalgary.ca

Michael Franklin CTVNewsCalgary.ca Senior Digital Producer

Published Thursday, March 19, 2020 1:34PM MDT Last Updated Friday, March 20, 2020 2:16PM MDT

The COVID-19 pandemic has many people racking up the bills for emergency supplies, but not much attention is being paid to finances, one credit agency says. (File)

Text:

CALGARY -- Consumers are scrambling to pick up whatever sort of supplies they feel they might need because of the coronavirus pandemic but some organizations are warning about the economic impact the quarantine could have on Canadians.

The B.C.-based Credit Counselling Society, which has offices in Alberta, says while many people are caught up planning out what supplies they need for an emergency, less attention is paid on how their bank accounts will fair.

"Unfortunately, many consumers’ emergency plans do not extend to their finances. With 48 per cent of Canadians $200 or less away from financial insolvency according to a recent survey, a quarantine or self-isolation situation leading to two weeks or more without a paycheque could have devastating consequences," the CCS said in a release.

Both the federal and provincial government have already announced what sort of assistance they will be extending to residents who are impacted by COVID-19, but the agency says there are other things people can do to keep their finances secure.

The CCS advises people to:

Contact their creditors as soon as possible, before you miss any payments. By doing this, the companies are made aware of the situation and can even share information about what measures they are putting into place
Put together a budget and stick to it. If it happens that you find yourself out of work or if you are forced to go onto employment insurance, your salary will likely be significantly impacted. A budget will help you keep track of your finances.
Get help from credit organizations. By speaking with an accredited financial counselor, such as the CCS, you can access a counsellor who can help you with your finances and your budget, completely free of charge.

Help also provided for clients

The CCS says it is operating its telephone lines and online services six days a week while the pandemic is ongoing.

Scott Hannah, president and CEO, says the company is also working behind-the-scenes with financial institutions to work out options for their current clients.

"We are providing free credit counselling, free budgeting guidance and helping consumers establish short term solutions to get through the next three months."

Further information about the CCS can be found online.