In this turbulent period on the job market where unfortunately many citizens are losing their jobs following a company restructuring or a relocation of commercial activity, many of our worried customers are asking us about this question. thorny consequences of a job loss on their current credit contract. We will take stock of this issue with you.
Current events require, here is a subject that interests our Internet users. Unfortunately, the sovereign debt crisis which has taken hold throughout Europe has convinced a number of governments to adopt austerity measures intended to contain public deficits within the limits set by Europe.
The consequences were not long in coming since Europe entered into recession, mainly following a very significant slowdown in household consumption. The automobile industry and the steel industry, to name but a few, have disastrous results which are forcing the managers concerned to find solutions. Unfortunately, it is often on the employment front that the fallout is heaviest. The year 2012 saw records in Belgium fall for bankruptcy declarations and job losses. In France, every day sees nearly…1,500 jobs lost.
Unfortunately, it is the middle classes who are affected: workers, executives and to a lesser extent senior executives. This is unfortunate because it is this category of people who borrow 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 principle
The dismissal has no impact on your credit contract. In short, you must continue to pay except for the risk of having your credit denounced. If you borrowed together, the entire credit falls on the creditworthy co-borrower. The latter cannot absolutely claim to have his charge reduced by half.
The parades
They are not numerous. Either you have borrowed with a co-borrower who will be able to assume the burden 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 loan (mortgage) which will repay the current one by taking our pledges on your property.
Job loss insurance
This insurance has 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.
Characteristics and conditions of job loss insurance.
It is entirely possible – and even recommended – to take out this type of insurance when entering into your credit contract. This insurance can accompany both an installment loan and a mortgage loan.
Terms ?
- Be at least 21 years old;
- Waiting period of 6 months after signing the credit contract;
- Be bound by a permanent contract;
- Have completed your one month trial period 3 months;
- Be able to claim unemployment benefits.
Blanket ?
Coverage is not unlimited. Some insurance policies guarantee you up to 12 months of reimbursement of monthly payments after your dismissal. Of course, based on the replacement income that you can earn, a breakdown will be made regarding insurance coverage. You will need to discuss this with your insurer and carefully read your insurance contract to assess its exact scope.
