Couple reviewing documents and smiling as they welcome the new affordability plan

How Canada’s New Affordability Plan Fights Inflation and Helps Those Struggling Financially or In Debt

In response to soaring inflation, the federal government is trying to help ease many Canadians’ financial burdens. In June 2022, Ottawa announced its Affordability Plan, designed to help renters, seniors over 75 and low-income Canadians manage rising living costs. Here’s an overview of the plan, plus more ways to overcome financial distress.

What is Ottawa’s Affordability Plan?

The Affordability Plan proposes the following supports and benefits:

  • Early learning and child care. Fees will be cut by 50 % for all regulated child-care spaces in Canada.

  • Canada Workers Benefit. About three million Canadians will see an average benefit increase of $1,200 each.

  • Canada Housing Benefit. A one-time $500 payment will go to renters with low income.

  • Old Age Security (OAS). Seniors over 75 will receive a 10% increase in their pension.

  • Dental care. Children under 12 living in households earning less than $90,000 will receive free dental care.

Government benefits, including OAS, CPP, Guaranteed Income Supplement, Canada Child Benefit and GST credit, will continue to be adjusted for inflation.

The plan equals $8.9 billion and is a repackaging of items already announced in the previous two federal budgets.

 

More Help For Canadian Families In Financial Distress

Besides government support, there are other ways Canadian families can improve their financial situation and take control of seemingly unmanageable debt. One is to seek the help of a licensed insolvency trustee (LIT), who’s specially trained to provide objective, sound financial advice to individuals and businesses.

Your LIT will assess your finances, income and debt load and help you take the necessary steps to get out of debt more quickly. Under Canadian law, LITs are the only entities authorized to file personal bankruptcies, consumer proposals and corporate insolvencies.

If you’re struggling with credit card debt, car payments and a rising cost of living, you may want to consider debt consolidation. Your LIT can help you get a loan that lets you pay off several creditors at once. You’ll be left with a single loan to pay off, typically with a much lower interest rate than if you paid all your debts individually. Imagine how much simpler it’ll be to budget when you have only one monthly payment.

 

Debt Help in Ottawa And Eastern Ontario

At D. & A. MacLeod Company Ltd., we’ve been helping Ontario families get out of debt since 1952. Our licensed insolvency trustees can help you with credit counselling, overcoming student debt and more. Contact us today to schedule a free, confidential consultation and start your journey to financial freedom.

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