Financial Management Resources

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

Phone: +15196603000

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

Phone: 519-660-3000

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

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.

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

Phone: 1-800-959-8281

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

PDF Download: Low Income Retirement Planning (Updated Jan 2025)

PDF Download: The Council on Aging of Ottawa - Low Income Retirement in Canada (July 2024)