Pandemic Personal Finance Update No. 5: How to get relief on car payments and free financial planning (Plus, prepare to pay taxes on the CERB)

It’s been widely publicized that mortgage deferrals of up to six months are available. Now, let’s turn to relief for people who can’t pay their car loan or lease payments.

Banks specifically include car loans in the types of payment deferrals they will offer, with deferral periods lasting two to six months. The financing arms of the big automakers are also offering relief, according to George Iny, director of the Automobile Protection Association. Actual terms vary from firm to firm, but the best deals are to defer up to three payments with no extra interest being charged. “The customer would pay nothing except having to make the exact same payments at a later date, in the months following end of the original loan or lease,” Mr. Iny said.

Some automakers are offering three months of relief, while others are asking customers to go month by month. It’s possible you’ll be asked to provide a record of employment to document the loss of a job.The $500-a-week Canada Emergency Response Benefit is taxable, but the full amount is paid up front with no deduction of taxes at source. “Taxes owed will vary from person to person, based on other income earned during 2020,” a spokesperson for the Canada Revenue Agency said by e-mail.

With unemployment skyrocketing during the coronavirus pandemic, personal finance columnist Rob Carrick offers some tips on how to deal with creditors and make a bare-bones budget.

Source: News Formal (newsformal.com)

rcarrick globemoney The CERB doesn’t cover most people’s rent/mortgage, ICBC, food or other monthly expenses. Don’t know how they’ll be putting some away for taxes. Most self employed that have lost their jobs won’t be able to pay their federal or property taxes this year.

rcarrick globemoney Keep money aside for HIGHER taxes, for the rest of your life. It may take 2 generations to pay for the spending being thrown around. According to IMF, Canada will be 2 of developed countries “budget busters”

rcarrick globemoney People are going to be screwed after all this is over.

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