Financial Management Resources

Here in London, there are opportunities to better your own situation, and assist in the healthy development of your community, through “alternative economies”, or creative ways of applying your talents and benefiting from the talents of others.

Whether you are on Social Assistance or working for low wages, you are probably an expert at managing money. Do not let anyone tell you that you need budgeting advice, unless you feel it may be necessary. Many people on Social Assistance run out of money towards the end of the month, especially in a few-week month. It is through no fault of your own that Social Assistance or low wages are not enough to get you through. If you feel that you need professional financial counselling, do not be embarrassed. It is incredibly difficult to manage debts such as credit cards and loans with little to no extra funds.

Listed below is information on savings plans, credit counselling, collection agencies, credit ratings, bankruptcy, income taxes, and retiring on low income.

How to Access Low-Cost Internet Services

If you missed this really informative workshop in May 2021 with LIFE*SPIN’s previous Community Advocate, Leia Beland, watch the recorded part of the meeting, including important information about accessing affordable internet! 

Energy Afforability Program

A workshop with specialist and host, Michael Tomassi of Greensaver to show how to access energy supports. Depending on eligibility and the existing equipment within your home, you may receive: LED light bulbs, High-efficiency shower-head, Faucet aerators (kitchen and bath), Drying line for clothes, Energy-efficient refrigerator, window air conditioner, Smart power strip, additional attic or basement insulation, Weather-stripping around doors and window, or a smart thermostat.

How to Access Financial Resources

An informative workshop with LIFE*SPIN’s previous Community Advocate, Leia Beland, to learn all about how to access financial resources!

Savings Plans

LIFE*SPIN has developed an educational information program for clients who would benefit most from the simplified information on how to build a more secure financial future. We have produced an easy-to-read publication for both the Registered Education Savings Plan and the Registered Disability Savings Plan. LIFE*SPIN’s RESP Information Booklet covers who can get one, how to get one, and the advantages of the plans.

Learn more about our Money Smarts Program.

If you want more help with budgeting and saving, LIFE*SPIN offers additional financial education programming on how to build a more secure financial future, including post-secondary education savings.

 

Collection Agencies

If you are unable to pay your credit card debts, if cheques bounce, or you can’t pay your loans and it is impossible to pay the full amount all at once to a collection agency write a letter to the agency, explaining why, and offer some alternative schedules of repayment. They may review your case every 6 months to see if you can arrange to pay in full. If they refuse to take monthly payments, call the business to which you owe money, and explain. Collection agencies may not pass along the option of monthly payments to them, but the businesses can enforce the creditor to accept monthly payments.

If you feel that you are being treated unfairly by a collection agency, ask to speak to the manager. If you are still not satisfied, file your complaint, in writing, with the nearest Consumer Services Bureau.

The Collection Agencies Act sets out a code of ethics for Ontario’s collection agencies. The regulations stipulate that collection agencies cannot:

  • Try to collect a debt without first notifying you, in writing, at the last known address they have been assigned to your account

  • Initiate legal action on the collection of a debt without first notifying you and obtaining the creditor’s written permission

  • Contact your friends, employer, relatives, or neighbours for information other than your telephone number or address

  • Call or visit your home frequently (This is harassment.)

The above information is from the Consumer’s Guide to Collection Agencies, which can be obtained for free from:

Ministry of Government and Consumer Services

P.O. Box 5600, Main Floor

80 Dundas St., London, Ont. N6A 1E7

Tel: 519-660-3000

 

Credit Ratings

Credit Bureaus are private companies that serve retailers, landlords, lending banks, trust companies etc., by providing them with information about your credit record. This information may be used to verify and access your credit rating.

The rating system goes from R-1 (the best) to R-9 (the worst). More information is available from the Ministry of Consumer and Commercial Relations.

Many circumstances and situations can affect your credit rating:

  • Unpaid bills

  • Bounced Cheques

  • Having no credit history (i.e. loans or debts paid off, or paid regularly)

  • Inconsistent employment history

If you want to check your own credit rating, contact Equifax Canada Inc. at their toll free number: 1-800-465-7166

Ministry of Consumer and Commercial Relations

P.O. Box 5600, Main Floor80 Dundas St., London, Ont. N6A 1E7

Tel: 519-660-3000

Bankruptcy

There is a “last resort” measure. If the situation is such that there is no possibility of paying your debts, bankruptcy may be an option. There are a number of bankruptcy trustees listed in the yellow pages who offer free initial consultations.

Do not be afraid to ask questions. It is your life and you have a right to make an informed decision about your finances. If you are considering declaring bankruptcy, do not be too hard on yourself. Large corporations and businesses often find themselves in the same situation.

Important points to consider before filing for bankruptcy:

 

· A bankruptcy trustee will charge roughly $1800 to handle your bankruptcy case. A payment plan can often be arranged. Until this fee is paid, you debt will not be discharged.

· You will most likely lose your income tax and GST rebates for a period of time, depending on individual circumstances.

· If you own your home, you may not have to sell it

· Bankruptcy will destroy your credit rating for seven years

 

City of London: Ontario Renovates Program

Ontario Renovates applications are open, until the funds are fully allocated.

Financial Assistance Options:

  • A one-time grant up to $5,000 for home accessibility modifications.

  • A one-time forgivable loan up to $15,000 for home repairs. The grant/loan does not have to be repaid, provided that the Homeowner agrees to continue to occupy the dwelling for at least 6 months, commencing on the first day of the month after the final payment is issued for home accessibility modifications. The Homeowner agrees to a forgivable loan with the loan forgiven at a prorated rate over 10 years for home repairs.

Who is eligible?

  • Seniors 60 years or older

  • Persons with disabilities

  • Families with household member(s) who is a senior or person with a disability may be eligible, if property value and income criteria are also met.

Ontario Renovates has other Housing Programs and Services, including programs for Landlords/Tenants.

 

Income Taxes

Social Assistance Benefits (OW) is not a taxable income. However, if you are working and receive a top-up from OW, your wages are taxable income.

People receiving a top-up from OW will not actually pay income tax on their employment income if it does not exceed the basic income tax exemption of the current fiscal year. In any case, you must file a tax return declaring your income.

If you are a low-wage earner, and too much tax is deducted from your wages, you can have the amount of the deduction reduced. A form called TD1 (E) is available at Revenue Canada, or from your employer. On this form, you and your employer can calculate how much income tax (if any) you will be required to pay. Tax forms for this and prior years are available at Revenue Canada.

If you need help filling the income tax form, Revenue Canada offers a volunteer tax service that operates during the regular tax season. Outside the regular tax season, you may contact LIFE*SPIN, to make an appointment with our Community Volunteer Income Tax Program for up to 10 years of back filing for your taxes.

Revenue Canada

451 Talbot St., London, Ont. N6A 5E5

Tel: 1-800-959-8281

 

Retiring on Low Income

Open Policy Ontario, a social policy consultancy of John Stapleton, provides an extensive document on how to plan for retirement on low-income. Check out his website for more information and translations of the package in French, Gujarati, and Simple Traditional Chinese.