When there isn’t enough money for every bill, the order you pay them in matters more than the interest rates. Missing rent can lead to eviction within weeks, a missed credit card payment can lower your credit score, and some creditors can take money without going to court. This page sets out which debts to pay first and why, the eviction and winter disconnection rules in several provinces, what to ask creditors before a payment is missed, where emergency money and government help come from, and the formal options if the numbers still don’t work. The debt strategies hub lists the other guides.
Take stock first
Whatever caused the shortfall (a lost job, an illness, a large bill), the decisions below are easier with one list: the money still coming in (pay, EI, benefits, a partner’s income), the bills due before your next payday, the cash and unused credit you have, and every debt with its minimum payment.
Which debts to pay first
Priority debts are the ones where non-payment costs you your home, heat, income or freedom from enforcement, not the ones with the highest balance or rate.
| Priority | Debt | What can happen if it isn’t paid |
|---|---|---|
| First | Rent or mortgage | Eviction; for a mortgage, power of sale or foreclosure after missed payments |
| First | Heat and electricity | Disconnection (winter rules below) |
| First | Child or spousal support | Enforcement by the provincial maintenance program, including garnishment and licence suspension |
| High | Income tax and other amounts owed to the CRA | Interest at 7% a year compounded daily for Q4 2026, and collection without a court order (what happens if you don’t pay the CRA) |
| High | Car loan or lease | Repossession of the vehicle |
| High | Home and car insurance premiums | The coverage can lapse or the policy can be cancelled |
| High | Condo fees | A lien on the unit |
| Medium | Phone and internet | Service may be cut off |
| Medium | Government student loans | Sent to the CRA or the province for collection after 270 days of missed payments (student loans you can’t pay) |
| Lower | Credit cards, unsecured lines of credit, personal loans | Damage to your credit report, collections; a private creditor has to sue and win before it can garnish wages |
| Lower | Subscriptions and memberships | May be cancelled |
A working order for a month with too little money:
- Housing (rent or mortgage).
- Heat and electricity, especially in winter.
- Child or spousal support.
- Food and medication.
- The car loan, if the car is needed for work.
- A call to the CRA to set up a payment arrangement for any taxes owed.
- Minimum payments on cards and loans with whatever is left, and a call to each lender explaining the situation.
Lower-priority creditors can’t take your wages or bank account without suing and winning first; wage garnishment explains the court steps and the provincial limits. That buys time, but the debts still need dealing with, and missed payments do lasting damage to credit.
Eviction notice periods for unpaid rent
| Province | Notice for non-payment | Next step |
|---|---|---|
| Ontario | 7 days for an N4 notice given on or after September 21, 2026 (14 days before then) | The landlord applies to the Landlord and Tenant Board; an eviction needs a board order |
| British Columbia | 10 Day Notice to End Tenancy for unpaid rent; the tenant has 5 days to pay or dispute it | The landlord can seek an order of possession from the Residential Tenancy Branch |
| Alberta | At least 14 days’ notice for a substantial breach, which includes unpaid rent | Paying everything owed before the termination date voids the notice |
In these provinces, paying everything owed within the time the notice allows stops the eviction for that notice, and removing a tenant requires an order from the tenancy board or court, not just the notice. Other provinces and the territories set their own periods through their residential tenancy offices. Sources: Tribunals Ontario, B.C. Residential Tenancy Branch, Alberta.
Winter disconnection rules
| Province or utility | Winter protection |
|---|---|
| Ontario | Electricity and natural gas distributors can’t disconnect residential customers for non-payment between November 15 and April 30 each year |
| Quebec (Hydro-Québec) | Service interruptions for non-payment are suspended from December 1 to March 31 |
| British Columbia (BC Hydro) | Non-payment disconnections of residential customers are postponed from November 1 to March 31 |
Bills keep accruing during these periods, with interest or late charges, and disconnection can follow once the period ends, so a payment arrangement made in winter avoids a large balance in spring. Elsewhere, calling the utility before the disconnection date is the way to ask about a payment plan or an assistance program. Sources: Ontario Energy Board, Hydro-Québec, BC Hydro.
Call creditors before a payment is missed
Lenders, landlords and utilities have more options before an account falls behind than after. When a payment can’t be made, calling ahead and asking for the hardship or customer assistance team (not the regular service line) opens these possibilities:
| Creditor | What to ask about |
|---|---|
| Landlord | A written plan to pay the arrears over a few months |
| Mortgage lender | A payment deferral, a temporary reduced payment, or a longer amortization |
| Utility | A payment arrangement, equal billing, or a low-income assistance program |
| CRA | A payment arrangement |
| Bank or card issuer | A hardship program, a temporary rate reduction, a reduced minimum, or a deferral |
Note the date, the name of the person and any reference number on every call, and ask for the agreement in writing. How to negotiate debt covers the conversation in more detail, and debt collection rights in Canada covers what an agency can and can’t do if an account has already been sent to collections.
Emergency money
| Source | Things to know |
|---|---|
| Savings or an emergency fund | This is the situation it exists for |
| TFSA | Withdrawals are generally tax-free, and the room comes back the following January 1; see TFSA withdrawal rules |
| RRSP | Withdrawals are generally taxable income, and tax is withheld at source |
| Employment Insurance | For a job loss or illness, apply as soon as work stops |
| Benefits you may be missing | The Canada Workers Benefit, the Canada Groceries and Essentials Benefit (formerly the GST/HST credit) and provincial benefits; filing a tax return is what triggers most of them |
| Family | A loan from family works best with the amount and repayment written down |
| Selling things | A second vehicle, electronics, furniture |
| Short-term work | Gig, delivery and freelance work; the side hustles hub covers the options |
| Provincial or territorial social assistance | If EI isn’t available or isn’t enough; in Ontario, see Ontario Works, and 211 can point to the local program elsewhere |
| Food banks | Freeing up grocery money for rent or utilities |
| Rent banks and utility assistance | Provincial and municipal programs for arrears; 211 has the local list |
Payday loans are an expensive way to cover a short gap because of their fees, and a missed repayment can lead to a debt cycle. In the provinces that regulate them, the most a lender can charge is $14 for every $100 borrowed, which the Financial Consumer Agency of Canada works out to about 365% a year on a two-week loan. In the agency’s example of $300 borrowed for 14 days, a payday loan costs $42.00, against $5.92 on a line of credit, $7.42 with overdraft protection and $7.65 for a credit card cash advance. Payday loan alternatives lists cheaper options. The government benefits guide covers federal and provincial programs, and the lost job financial guide covers the first steps after a layoff.
Free help
- 211 (phone or 211.ca) connects to local help with rent, food, utilities and money.
- Non-profit credit counselling can set up a debt management plan that often includes interest relief; see credit counselling in Canada.
- Community legal clinics: in Ontario, people with a low income may qualify for free legal help on landlord and tenant matters from a clinic funded by Legal Aid Ontario.
- A Licensed Insolvency Trustee may offer a free first consultation on consumer proposals and bankruptcy.
Companies that charge large upfront fees to “settle” your debts can leave people worse off; the debt relief options guide covers how to spot them.
If the numbers still don’t work
If, after the priority bills, there’s not enough to cover the minimum payments on everything else, the formal options are:
- A debt management plan through a non-profit credit counsellor: you repay the full balances, often with interest reduced or removed by the creditors who agree.
- A consumer proposal through a Licensed Insolvency Trustee: a legal offer to pay part of what you owe, which stops collection action and binds the creditors once accepted.
- Bankruptcy, also through a trustee, which releases most debts in exchange for non-exempt assets and any surplus income.
Consumer proposal vs bankruptcy explains the two legal processes, and the debt relief options guide compares every route side by side.
After the crisis
Once income is steady again, the emergency fund calculator estimates how big a fund would cover your costs, the debt payoff plan covers paying down what’s left, and the credit score hub covers rebuilding a score after missed payments.
Money trouble is stressful, and the stress makes it harder to deal with the bills. The debt and mental health guide lists free support, including crisis lines available at any hour.
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 29, 2026. How we check facts.
- Canada Revenue Agency: Prescribed interest rates
- Canada Revenue Agency: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE
- Employment and Social Development Canada: Canada Student Financial Assistance Program annual report 2023 to 2024
- Financial Consumer Agency of Canada: Payday loans