In this turbulent period on the job market where unfortunately many citizens lose their jobs following a corporate restructuring, a relocation of commercial activity, many of our worried customers ask us about this question thorny consequences of a job loss on their current credit agreement. We take stock of this issue with you.
News requires, here is a subject that interests our internet users. Unfortunately, the sovereign debt crisis that has spread across Europe has convinced many governments to adopt austerity measures supposed to contain public deficits within the limits set by Europe.
The consequences were not long in coming since Europe went into recession, mainly following a very significant slowdown in household consumption. The automobile industry and the steel industry display, to name just a few, disastrous results which force the leaders concerned to find solutions. Unfortunately, it is often on the employment front that the fallout is the heaviest. The year 2012 saw in Belgium the records of bankruptcy declarations and job destruction. In France, every day sees nearly… 1,500 jobs lost.
Unfortunately, it is the middle classes who are affected: the workers, the executives and to a lesser extent the executives. This is regrettable because it is this category of people who borrows and who could be faced with credit risk.
What about a layoff on your current credit? This brief analysis applies to both the installment loan and the mortgage loan.
The dismissal does not affect your credit agreement. In short, you must continue to pay except the risk of having your credit denounced. If you borrowed two, the entire credit weighs on the creditworthy co-borrower. The latter can absolutely not claim to reduce his load by half.
There are not many. Either you borrowed with a co-borrower who can assume the cost of the credit, until you can find a new source of income or you are the owner of a building free of charges. In this case, it is possible to grant you a new credit (mortgage) which will reimburse the current one by taking our pledges on your property.
Loss of employment insurance
This insurance is promised a bright future unfortunately. If you feel that your professional activity is threatened, it will even become essential to take out this type of insurance.
It is quite possible – even recommended – to take out this type of insurance during your credit agreement. This insurance can match both an installment loan and a mortgage.
- Be at least 21 years old;
- Waiting period of 6 months after taking out the credit agreement;
- Being in the bonds of an open-ended contract;
- Have completed your trial period of one month 3 months;
- To be able to claim unemployment benefits.
Coverage is not unlimited. Certain insurances guarantee you up to 12 months of reimbursement of monthly payments after your dismissal. Of course, according to the replacement income that you can promote, a breakdown will be made as to the coverage of the insurance. It will be necessary to discuss with your insurer and carefully read your insurance contract to measure the exact scope.