Balancing Caregiving Costs and Debt

Caregiving often comes with changes to your income and spending. Many caregivers reduce their work hours or take unpaid leave, while also covering out-of-pocket expenses like home modifications, special diets, or respite care. That’s why building a realistic and adaptable budget is key. Track your monthly income and expenses, especially those affected by your caregiving role. Make sure to include regular debt payments in your budget. If your debt payments are starting to stretch your budget too thin, consider speaking with one of our friendly, professional Credit Counsellors. We offer free, confidential sessions to help you build a manageable plan. 

Don’t forget your own essential costs in your budget, such as groceries, rent or mortgage payments, and childcare. Your wellbeing matters too. When your finances are in order, you’ll be better equipped to provide care without financial stress weighing on your mind. 

How to Live On Reduced Income

Creating a Sustainable Financial Plan for Caregivers

Creating a sustainable financial plan for caregivers is about taking into account both your caregiving responsibilities and your long-term, personal finance goals. This isn’t just about budgeting—it’s about aligning your financial decisions with your life circumstances. Start by identifying your financial priorities. These might include:

• Paying down high-interest debt
• Establishing or replenishing an emergency fund
• Saving for retirement or your future healthcare needs
• Planning for the care of your loved one when you’re no longer around 
• Covering your loved one’s ongoing care expenses

Once you know what you’re working toward, you can explore strategies to make those goals more achievable. That might include consolidating debt to lower your monthly payments, automating savings contributions (even small ones), or planning for irregular caregiving expenses like respite care or transportation. Importantly, keep your financial plan flexible. Caregiving needs can change quickly, and your financial plan should evolve alongside them. Check in with your budget regularly and adjust it as needed—especially after big life shifts like a change in employment or your loved one’s health decline. A plan that’s adaptable can help you stay focused on reducing debt without neglecting your or your loved one’s health and wellbeing.

Want to be Financially Prepared for Anything?

Seeking Support: Financial Resources for Caregivers 

Seeking support through financial resources for caregivers can ease the pressure on your budget and give you room to breathe. You don’t have to shoulder every cost alone—there are programs, benefits, and organizations that can help reduce caregiving expenses and free up funds for debt repayment. Some support may also be available through your loved one’s care team, such as hospital staff, social workers or care coordinators. Here are a few resources that may be available in your area: 

• Government programs: Federal and provincial benefits like the Canada Caregiver Credit and the Disability Tax Credit can offer direct financial relief or reduce your taxable income.
• Community grants and subsidies: Some municipalities or provinces offer financial assistance for home care services, medical equipment, or caregiver respite.
• Non-profit organizations: Speak to one of our counsellors for free, confidential debt counselling and budgeting help. Organizations such as Carers Canada and the Canadian Centre for Caregiving Excellence have extensive lists of resources available to caregivers. 
• Employer benefits: Some employers offer extended health benefits, Employee Assistance Programs (EAPs), or flexible work arrangements that can help you manage both work and caregiving 

It’s also important to recognize that heightened stress can impair decision-making, making it even harder to navigate your caregiving and financial responsibilities effectively. Giving yourself permission to accept help, whether it’s a respite care option or assistance from community services, can be part of a solid financial plan. Caregivers often feel the pressure to do everything themselves, but you don’t have to do everything alone. Sometimes, the best way to care for your loved one is by finding the right care solution. For example, this could mean exploring assisted living options. These facilities can offer seniors the social interaction and care they need, while allowing you to spend quality time with them, free of the more taxing daily duties. This shift not only benefits your loved one but also helps restore your emotional and physical energy, empowering you to make sound decisions for both your caregiving and financial futures.

Managing Debt, Balancing Costs, and Finding Support as a Caregiver: Final Thoughts

It can be tough to manage debt when you’re caring for a family member, but you’re not alone. Managing debt as a caregiver means looking after your own financial wellbeing—by keeping up with debt payments, maintaining a basic budget, and planning for emergencies—while continuing to support someone you love. It also means balancing caregiving costs and debt with a flexible financial plan for caregivers—one that adjusts as your situation changes, accounts for both daily expenses and long-term needs, and helps you avoid taking on more debt. With the right resources for caregivers, you can ease the pressure and take back control of your finances. If you’re unsure where to start, connect with one of our credit counsellors. We’re here to support you, judgment-free.