How to manage debts when you are between jobs in Canada – Moneysenense

In July 2025, The unemployment rate of Canada floated around 6.9%, with youth unemployment reached 14.6%. Two in five Canadians say they are worried that someone in their household can lose their job, the highest level of fear of fear ever, ever reported, According to MNP. At the same time, 42% of the Canadians say that money has been them Greatest source of stress This year, and almost half of them lose sleep.

If you have between jobs and are concerned about how you can cover your bills, protect your credit or find out what kind of help is available, you have come to the right way. In this article we will go through you how you can give priority to payments, negotiating with creditors and accessing unemployment programs, so that you can keep things manageable while you are looking for your next occasion.

The first 48 hours: Triage Your finances

The first few days after losing your job can feel overwhelming, but taking a few simple steps can help you get a sense of control back.

Start by adjusting your current budget or making a bare budget with only essence: housing, utilities, groceries, telephone, internet, transport and minimal debt payments. Factor in any income that you expect to have during this time, such as severance pay, emergency savings or labor insurance (EI). This gives you a clear picture of what you need and where you might have to cut back.

You then want to give your expenses priority. Make housing your top priority, including rent or mortgage and utilities and then add basic feed costs and health needs. Secure debts (loans bound to assets, such as a vehicle) then come, followed by uncovered such as credit cards.

Once you have covered the essence, you can look at non-essential costs that you can crop. “Prioritize housing, utilities, food and transport. If money is tight, do your best to keep secure debts up to date, because it is easier to negotiate with uncovered,” says Mike Bergeron, credit counseling manager at Credit Canada.

It can be tempting to rely on payment daily loans or credit with a high interest rate, but these can catch you in a debt cycle. Safe alternatives can include taking a loan from a bank or credit union, talking to a non-profit credit advisor About debt consolidation or exploring hardships with your lenders. Although not all debts have the same risk, you must bear in mind that missing payments can lead to extra costs, damage to your credit score or collections.

Read more: How you can consolidate your debt

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Speak with creditors: when you have to reach and say something

If you have trouble making payments, contact your creditors as soon as possible. It can feel uncomfortable, but reaching early can open the door for options that help to lower your payments and protect your credit. Many lenders offer hardship programs such as reduced interest, lower minima or payment deferment – but they do not offer them unless you ask.

“One of the most common mistakes I see is to avoid their creditors when they lose their jobs,” says Bergeron. “The sooner you communicate your situation, the more options you have. Most creditors prefer to work with you than send your account to collections.”

If you contact you, be immediately and honest. You could say: “I have had a loss of income and want to keep my account in good reputation. Which hardships are available?” Before you agree, you ask: “Can you confirm how this will influence the interest, reimbursements and my credit report?” If you are offered a deferment or payment plan, clarify how long it takes, whether the interest will continue and when regular payments will resume. Always get the full agreement in writing. This helps prevent surprises and gives you something to refer to later.

If your account has already gone to collections, know your rights. Collectors must follow provincial laws and not harass or threaten you. You can ask them for more information about the debt and any payment options, just as you would do with a creditor. Stay calm, ask for everything in writing and do not feel under pressure to agree to something on the spot. Consult a credit adviser if you need help with dealing with collections.

Available support: access to government and non-profit resources

If you are between jobs, there are programs throughout Canada that can help. Start with Sign up for egg As soon as you stop working, even if you have not yet received your employment (processing can take a few weeks). “Make sure you have enough income to support your expenses in the house, keep a roof over your head and keep food on the table,” says Randolph Taylor, a certified credit advisor at Credit Canada. Every province Also offers its own emergency or income aid programs that can help with urgent needs such as rent, utilities or basic costs for living, depending on your situation.

You can also be eligible for utilities offered by many hydro and gas providers throughout the country, including account adjustment, payment plans or seasonal discounts. For help with daily essential supplies, food banks and community organizations can offer groceries and supplies without costs or judgment. These sources are designed to support Canadians through temporary hardships such as job losses.

If you have trouble managing debts while you are unemployed, consider contacting a non-profit credit consultancy such as such as such as Credit Canada For free one-on-one financial coaching and your income, costs and debts revised to build a realistic plan for your situation. Credit advisers can lead you through options such as debt consolidation, on your behalf, contact creditors and offer education and budgeting sources.

Payments prioritize: which debts must be to go first

When money is tight, it is important to concentrate on the debts that bring the most risk. Start with secure debts, such as your mortgage, rent or car loan. Since secure debts are active to an active, they can miss these to deportation, shielding or losing your vehicle. If you fall behind, contact your landlord or lender early to ask for deferment, rental programs or adjusting your refund plan.