Beware of the Pink Slip

TORONTO, ON – Today’s announcement that Research in Motion will be cutting a quarter of its Halifax staff in an effort to reduce the company’s global work force, has left many Canadians wondering how they will survive a layoff if the dreaded pink slip comes their way.

With the average household debt-to-income ratio in Canada holding at 152 per cent, a loss of wages is the biggest threat to the financial security of Canadians, according to Consolidated Credit Counseling Services of Canada.

Losing a job is one of life’s most stressful events, and if you’re carrying high debt with little savings a loss of income can be detrimental for most people” said Jeffrey Schwartz, executive director at Consolidated Credit Counseling Services of Canada. “It is crucial that Canadians get their financial house in order before it’s too late.”

For those who have recently experienced the hardship of losing their job, Consolidated Credit offers these tips to help Survive a Layoff:

  • Find out whether you are entitled to federal employment insurance benefits;
  • Check your benefits to find out what kind of severance you may get;
  • Make a budget;
  • Create a plan for paying your bills;
  • Get creatively frugal; and
  • Ask for help if you feel you are in financial crises.

“It is important to acknowledge the reduction or loss of income and change spending habits right away”, added Schwartz. “When newly unemployed workers continue spending at the same rate and use credit cards to fill in the gaps, the debts can become unmanageable and quickly lead to financial crises.”

To learn more about budgeting and how you can survive a layoff, Consolidated Credit offers a free web-based budget and debt analysis tool, along with a Surviving a Layoff booklet to help you manage the emotional and financial stress of losing a job.

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