A local credit counselling service says it’s getting calls from people who they would never normally hear from due to COVID-19.

The Executive Director of Credit Counselling NL, Al Antle, says they’re hearing from people who normally pull in good income, and are suddenly finding themselves in a difficult position.

He says we all live to the maximum of our income, and when that income is affected, things can turn quickly as the obligation to pay debts remains.

He referenced one call he received concerning the debt owed on a major purchase made last year when things were good, which had suddenly become a big liability.

Antle understands the feeling of desperation caused by loss of income, but warns against liquidating major assets at less than their value.

He says more and more people are willing to sell their “toys at bargain basement prices” with the aim of making minimum payments on the financing for the six to eight months they expect they will be unemployed. “That’s not a good plan” says Antle.

He agrees the liquidation of assets can be good in a bad situation. But he warns that while a quick sale at low prices might give you a short-term infusion of cash, the money owed on the item is still outstanding, and there’s no guarantee about what the future might hold.