The Canadian Centre for Policy Alternatives (CCPA) reports that more than 1 in 5 Canadian professionals are employed in a precarious job. Precarious employment could mean no benefits, medical coverage, sick days and also the inability to be part of a union. Essentially, these workers are filling permanent positions but are denied permanent employee rights. This creates uncertainty for the employee and contributes to the emotional and financial stress of the family. Just like high blood pressure and stress, chronic job insecurity has a negative effect on a persons overall health.
What is a Precarious Job?
Precarious jobs are associated with part time or self employment They also include contract or fixed-term work and seasonal employment or temporary and on-call positions such as home-based workers and telecommuting. A full-time position on the employers premises for a decent wage could still be considered precarious employment if there is a fear of relocation, layoff or company shut-down.
When facing employment uncertainty, its important to always live within your means and resist the temptation to over spend. Never supplement income with the use of credit cards or be tempted into Buy Now, Pay Later plans. Buy Now, Pay Later, also known as retail sales plans, can accrue interest during the no-payment required period. This results in the original balance PLUS compounded interest to be paid when the debt becomes due.
As credit card balances increase and only minimum payments are being maintained, consumers consider consolidation loans to lower monthly repayments. For a consumer employed in a precarious job, they may not meet the lending criteria. The bank lender could require a co-signer but is that really a wise decision? Having a co-signer means that person is also liable for your debts so consider all the implications carefully before choosing this option.
Warning Signs That Your Financial Health May Be Suffering
- Must utilize credit to pay for every day expenses such as grocery, fuel and utilities
- Making minimum payments only and missing payment due dates on Credit Cards or Loans
- Unable to pay utility bills or rent on time
- No emergency savings
How Can I Balance My Precarious Job and My Financial Health?
- Know your budget! What is the minimum amount of money that needs to be earned each month to make ends meet? Our member, Credit Counselling Society, has a free service at MyMoneyCoach to show you how.
- Set aside savings for emergencies or to cover unpaid sick days
- Decreasing expenses will help increase savings. Review bank charges, consider carpooling to and from work also packing a lunch and making coffee at home.
- Never put vacations or large purchases that you cannot afford on credit cards
- Keep your resume up to date. Be sure to include new skills and any training you have taken.
Do you identify with any of these warning signs? Then it’s time to speak to a qualified credit counsellor in your area.