Protect Yourself Financially During and Following COVID-19

The COVID-19 pandemic has affected millions of Canadians. COVID-19 is a highly contagious virus that is spread through human-to-human contact – this makes it difficult for society to re-open without major infrastructure changes. As a result, many Canadians have been laid off from their workplace, and some have even lost their jobs due to their workplace closing.

Beware Of Potential Scammers

Even amid a worldwide pandemic, there are still people looking to take advantage of others financially. One popular scam is offering Canadians a reserved spot for vaccination in return for their health card and credit card information. Scammers will disguise themselves as official institutions like the World Health Organization or the Public Health Agency of Canada, which is particularly troubling for seniors and other vulnerable persons. Ensure that you never give out personal information, including your social insurance number, over the phone. Scammers may use this information to access your finances.

Credit Card Offers

It’s not surprising to see credit companies offer amazing deals to consumers at this time. As previously mentioned, creditors understand that consumers don’t have access to expendable cash during the pandemic. Therefore, they will offer credit accounts at an incredibly affordable rate, which may entice consumers to sign up for 1 or 2 cards.

The thing about credit card interest rates is that they’re not static, which means they’re subject to change at a moment’s notice. A fluctuating interest rate and an uncertain economy can create problems for you down the line. Without a steady income, be very careful when considering signing up for a new credit card.

Loan Consolidation

Your financial situation should be reviewed by a Licensed Insolvency Trustee (LIT) before a restructuring solution is considered. In normal times, debt consolidation would allow you to take out a much larger loan to subsidize their active loans and debts. However, special consideration must be given to debt consolidation during the COVID-19 pandemic. At present, banks and other financial institutions may require you to include a guarantor that ensures that another person is responsible for your debt if you are unable to meet payment deadlines. With so much uncertainty right now, you would be wise to book an appointment with a LIT before making a major financial commitment.

If you were experiencing financial difficulties before the COVID-19 crisis or the pandemic has overwhelmed your financial situation, make sure you reach out to a LIT for comprehensive advice. For more information, contact Andrea Orr today.