Running out of financial aid during the pandemic? Money expert on what to do next

Click to play video: 'Running out of financial aid? What Canadians can do next'
Running out of financial aid? What Canadians can do next
Financial expert Kelley Keehn joins 'The Morning Show' with tips to manage finances from the impacts of both the U.S. elections and the pandemic. – Nov 3, 2020

Many Canadians are facing financial insecurity as the COVID-19 pandemic goes on.

A recent report found two in five Canadians are clueless on what to do after their financial aid runs out.

Financial expert Kelley Keehn joined The Morning Show with some essential tips to be financially prepared for the months ahead.

She said for many, debt is the number one cause of financial stress.

“One of the biggest expenses is debt repayment,” she says.

It is important to realize that our ‘focus’ has been narrowed due to financial distress.

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Click to play video: '“Taking Your Financial Photograph” for Financial Literacy Month'
“Taking Your Financial Photograph” for Financial Literacy Month

“Really look at your options. Ask your bank if they can extend your mortgage,” she said.

She recommends avoiding last resorts such as “cashing in your RRSP or payday loan.”

Next, Keehn advises on building an emergency fund, even if it means small payments on a regular basis. She recognized many people are unable to save during the pandemic.

She also explained the difference between credit counsellors and bankruptcy trustees.

While the two work together, credit counsellors help you with a debt management plan, and a bankruptcy trustee assists in paying that debt according to the plan.

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Depending on your situation, she added one may be better than the other.

To learn more about managing finances during the pandemic, watch the full video above

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