Four tips to get your COVID-19 finances in order

Whether you've been living high on the hog during the pandemic, thanks to relief benefits, or maxing out your credit to cope with income loss, the other shoe may be about to drop.

The Canada Emergency Response Benefit — or CERB — will end in October.

And six-month mortgage deferral plans are coming to an end this month or next.

"Reality is coming," and stress levels are rising, said John Eisner, president and CEO of Credit Counselling Services of Atlantic Canada.

It's a non-profit organization that helps Atlantic Canadians with budgeting and debt repayment plans. 

Eisner says the number of people calling for help has been gradually increasing, especially in the last month or so.

"The financial situation is now really starting to be taken a little more seriously," he said.

"For most people, COVID-19 has changed a lot of things from a financial perspective," Eisner said.

For many of those receiving emergency benefits, living on $2,000 a month was an adjustment, whether it was more or less than they were used to.

Some people may not have put enough away for income taxes, said Eisner. They'll have a bit of time - until next April - to make up for that.

Many will be "transitioned" to EI this fall, where payments are 50 per cent of a person's average insurable weekly earnings, to a maximum of $573.

"It's very confusing to the average consumer," said Eisner.

They're now "falling into that trap," he said.

Many of the calls for credit counselling are from people who've never lost a job or had issues with their financial situation before.

"Financial institutions have been calling clients asking, 'What's your plan when this comes to an end?'"

Here is some of his basic advice:

1. Seek help

"Most people will tell you their weakness is money management and budgeting," said Eisner.

That's understandable, he said, since few people have been taught about it in school

"If Mom and Dad haven't done a good job, chances are you've picked up their bad habits."

He recommends seeking out an expert to work with.

2. Deal with your necessities of life first

Your necessities of life have to come first, bar none, said Eisner.

It doesn't matter who you're dealing with for credit counselling advice, he said, if they're not looking at things like the roof over your head, heat, lights, food and medical expenses, they're not looking after your best interests.

"You need to get those things in order first, then you say, 'OK, now how do we tackle the debts, the creditors and so forth?'"

3. Know your rights

Eisner says what often happens is creditors call and can be very persistent and demanding.

"We've heard it over and over, the old saying, the squeaky wheel gets the grease."

"Sometimes they don't want to hear about your problems, they don't care about your problems, they just want your money."

In these circumstances, he said, it helps to know what can and cannot happen and what people can and cannot do.

"It's very important because it can be very, very intimidating."

4. Get your family on the same page

One common stumbling block, said Eisner, is communication.

If you're in a relationship, you have to talk about the situation with your partner, he said, and come to an agreement about what needs to be done.

"You have to let them know, this is where we're at. This is what's going on. Because if you're not on the same page, you won't be successful."

Children have a role to play as well.

"You've got to make everyone in the household understand there's changes that need to take place."

That can be tough, he said.

"Especially if you've got younger children that you've perhaps given a little more than you should have."