Trying to get by has become much harder for millions of Canadians because of the COVID-19 pandemic. Thousands are out of work and we are all worried about what the future holds for us. In particular, many people are facing debt problems because of employment disruptions: Some of us simply can’t pay our bills.
The Government of Canada and Canada’s leading banks are working together to provide concrete relief to Canadians. Ruth Mercer, Senior Manager, Credit Restructure, at TD, and Tannis Dawson, a High Net Worth Planner with TD Wealth, discuss some of the options currently available to Canadians as well as ideas on how to get bills under control.
Depending on the situation, an individual or family may be eligible for a temporary deferral of interest on TD credit cards or a temporary deferral of payments on a TD loan. A person may also be eligible for a mortgage payment deferral.
Here are the details: The program is limited to TD products and services and is for TD customers who wouldn’t ordinarily qualify for other credit programs. The program is offered on a case-by-case basis to each person or family and can provide much-needed relief if finances are temporarily squeezed. It should be noted however that a pause in payments or interest will not eliminate the debt itself. TD clients can find more information here on what COVID-19 relief offers may be available.
Ruth Mercer says that this relief program is an expansion of TD ‘s current credit restructuring programs. The relief options were expanded to help those impacted by the COVID-19 disturbance. She says that the program’s staff can look at a family’s mortgage, credit card obligations and TD loans to see which way is best to bring relief and alleviate fears around financial worries. Mercer says the bank can also help people consolidate their TD services into one loan to make repayment more manageable.
“We free up their cash flow so they can manage things easier,” she says.
Debt consolidation and prioritization
For those who may not be in an emergency situation, Tannis Dawson suggests one way to control credit card debt is by prioritizing debts that have the highest interest rates and consolidating them under a lower-interest loan. For instance, she says, a Home Equity Line of Credit (HELOC) could be used to pay off your credit card. The interest rate on a secured line of credit is typically much lower than the interest rate on a credit card and may help to lower the amount of your payments. For those who don’t own a home, other lending solutions may be available.
Other options to consider
Getting into debt may happen when we are faced with unexpected bills or when we live beyond our means, says Dawson. Getting out of debt may mean looking hard at cash coming in and out of the household, and planning and budgeting so that you can keep ahead of bills. If you don’t have access to low-interest credit but you do have some funds left over after paying the bills, you may be able to use that to make your payments. Likewise, if you have funds set aside in a Tax-Free Savings Account (TFSA). Depending on your situation, Dawson suggests that one way to deal with debt is to sell an investment within the TFSA and withdraw the funds if it makes overall sense. This is an efficient way to pay down outstanding debt because there are no tax implications on withdrawals from a TFSA and contribution room remains the same and can never be lost.
If you’re facing an upcoming payment on your credit card and don’t think you’ll be able to make it, reach out to your financial provider to find out what options may be available. TD clients can also find more information here. Mercer says that some customers that her staff have spoken with have been appreciative of the support they’ve received.
“It’s great to hear back such heart-felt gratitude from customers who think they are desperate. Many are scared they are going to lose their homes and they tell my staff, ‘you saved our lives.’ It gives you a warm and fuzzy feeling.”
DISCLAIMER: The information contained herein has been provided by TD Wealth and is for information purposes only. The information has been drawn from sources believed to be reliable. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance.
TD Wealth represents the products and services offered by TD Waterhouse Canada Inc., TD Waterhouse Private Investment Counsel Inc., TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The Canada Trust Company).
All trademarks are the property of their respective owners.
® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.
MENTIONS JURIDIQUES : Les renseignements aux présentes ont été fournis par Gestion de patrimoine TD aux fins d’information seulement. Les renseignements proviennent de sources jugées fiables. Les graphiques et les tableaux sont utilisés à des fins d’illustration et ne reflètent pas des valeurs ou des rendements futurs. Ces renseignements ne fournissent pas de conseils financiers, juridiques, fiscaux ou de placement. Les stratégies fiscales, de placement ou de négociation devraient être étudiées en fonction des objectifs et de la tolérance au risque de chacun. Gestion de patrimoine TD représente les produits et services offerts par TD Waterhouse Canada Inc., Gestion privée TD Waterhouse Inc., Services bancaires privés, Gestion de patrimoine TD (offerts par La Banque Toronto-Dominion) et Services fiduciaires, Gestion de patrimoine TD (offerts par La Société Canada Trust). Toutes les marques de commerce appartiennent à leurs propriétaires respectifs.
ᴹᴰ Le logo TD et les autres marques de commerce sont la propriété de La Banque Toronto-Dominion.
免責聲明：本文內之陳述由道明財富 (TD Wealth) 提供，僅供資料說明之用。本文根據相信為可靠的資料匯編而成。圖表僅供解說之用，並不反映任何投資的未來 價值或未來回報。本文資料並不旨在提供財務、法律、稅務或投資建議，衡量個別投資、交易或稅務策略時，應考慮個別人士的目標和風險承受能力。道明財富、道明銀行 (The Toronto-Dominion Bank) 與其聯屬及相關實體對任何資料錯漏或導致的損失或傷害概不負責。道明財富是代表由道明宏達理財加拿大有限公司 (TD Waterhouse Canada Inc.)、道明宏達理財私人全權託管投資有限公司 (TD Waterhouse Private Investment Counsel Inc.) 以及透過道明銀行提供之道明財富 私人銀行 (TD Wealth Private Banking) 和透過加拿大信託公司 (The Canada Trust Company) 提供之道明財富私人信託 (TD Wealth Private Trust) 所提供的 產品與服務。TD Waterhouse Canada Inc. － Member of the Canadian Investor Protection Fund。
® 道明 (TD) 標誌和其他商標是道明銀行的產權。
免责声明：本文内之陈述由道明财富 (TD Wealth) 提供，仅供资料说明之用。本文根据相信为可靠的资料汇编而成。图表仅供解说之用，并不反映任何投资的未来 价值或未来回报。本文资料并不旨在提供财务、法律、税务或投资建议，衡量个别投资、交易或税务策略时，应考虑个别人士的目标和风险承受能力。道明财富、道明 银行 (The Toronto-Dominion Bank) 与其联属机构及相关实体对本文中任何资料错漏或导致的损失或伤害概不负责。道明财富是代表由道明宏达理财加拿大有限公司 (TD Waterhouse Canada Inc.)、道明宏达理财私人全权托管投资有限公司 (TD Waterhouse Private Investment Counsel Inc.)、以及透过道明银行提供之道明财富私人 银行 (TD Wealth Private Banking) 和透过加拿大信托公司 (The Canada Trust Company) 提供之道明财富私人信托 (TD Wealth Private Trust) 所提供的产品与 服务。TD Waterhouse Canada Inc. — Member of the Canadian Investor Protection Fund。
® 道明 (TD) 标志和其他商标是道明银行的产权。