Many Canadians have no financial plan for when government assistance ends

 

With many Canadians struggling to make ends meet due to the pandemic, things could get worse before they get better.

A recent study conducted by Angus Reid and sponsored by Credit Canada found 39 per cent of Canadians have no plan in place for when government assistance comes to an end.

This number increases to 44 per cent for those between the ages of 35 and 54, and drops slightly to 36 per cent for those between who are 18 to 34 years old and 55 years old and older.

The pandemic has caused significant financial strain for many Canadians--24 per cent have been forced to turn to government income support, such as the Canadian Emergency Response Benefit and Employment Insurance, while nine per cent have had to use payment deferrals for items including cars, mortgages, rent, lines of credit, credit cards, etc.

Additionally, 10 per cent of respondents said they intend to resort to traditional forms of borrowing such as family loans, bank loans, and credit cards when income support programs end.

However, 49 per cent of those receiving income support believe they will no longer require any form of financial assistance once these supports have ended.

"For those without a debt management plan, now is the time to put one in place," Keith Emery, co-CEO of Credit Canada, said in a news release.

"When government supports and payment deferrals come to a complete halt, the financial counselling network will reach beyond its critical mass if everyone waits until the last minute to get help," he continued.

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