Losing a job can happen to anyone, usually at the least expected moment. This situation, especially when you do not expect it, is very difficult, but for many it becomes even more difficult due to having credit obligations. What to do when this happens? The main thing is not to panic because she is a bad advisor, especially when it comes to financial matters.
Already at the stage of borrowing it is worth considering whether you have a sufficiently stable financial situation to regularly and timely repay the loan. To start with, you should ensure adequate financial resources. It would be good to have some funds to cover several loan installments. With this solution, the borrower can focus on looking for a new job, not money to pay his debts. Another solution that can be used when taking out a loan is insurance, which will also include the loss of your job.
It is important to familiarize yourself with its conditions, because each bank has the right to set its own limits regarding the operation of such insurance. Most often, however, it covers six to twelve installments, but only if the borrower did not lose his job through his own fault and was dismissed from it. It should be remembered that in many institutions such insurance can be purchased only at the time of concluding the loan agreement. Banks protect themselves against entering into contracts with people who expect to lose their jobs.
Contact with the bank
It is very important not to try to avoid contact with the financial institution with which you are indebted. You also can’t count on the fact that the bank will not notice that the loan has stopped paying off. Such actions may lead to the fact that the debtor will be harassed by phone calls and letters admonishing the repayment of overdue installments, and if that fails, the bank will decide to initiate debt recovery proceedings. In the worst case, it will demand immediate repayment of the loan or will take the property and sell it quickly. This situation can be avoided if you go to the bank early enough and explain to your employee your current situation. It is important to remember that the bank also wants the loan to be repaid.
If only because recovery is expensive and inconvenient for both parties to the proceedings. That is why he has the appropriate procedures and ways in place to help the payer overcome a difficult situation. One of them is deferring payment of installments for a specified period, which usually lasts up to six months. To be able to use such a solution, you must submit an appropriate application at least seven days before the installment repayment date. If you get a positive answer, you can go on a so-called credit vacation. However, this does not mean that you can stop paying off the loan completely.
Lenders usually only agree to the lack of capital repayment, but interest should still be paid on time. Another and also the most commonly used solution is extending the loan period. This gives you the opportunity to significantly reduce your loan repayment installments, making it easier to deal with difficult times. In addition, once the borrower has normalized his financial situation, he will be able to overpay the loan and return to the previous repayment period.
Loan consolidation secured by a mortgage
This is another option that the borrower can use if he has a problem paying off his debt. Its main advantage is the fact that due to the long loan period that can be used, it significantly reduces the interest rate, and thus the installments become lower and more affordable. The problem may arise when the applicant’s income is too low or not at all. In this situation, he may ask for help from a family member who agrees to take a loan with him. This increases his chance of consolidation, because the bank takes into account the income of all borrowers. Another solution involving third parties is to secure another person’s mortgage with consent.
Regardless of whether you lose your job or other financial problems, you should immediately contact the bank and inform them about them. Only such action can protect the borrower from the undesirable effects of trying to conceal problems. You must always remember that there is a way out of every situation, but you have to try to get it.
The information was provided to us by the bankowe-konto.pl website, which conducts comparisons and possibilities offered by various bank accounts in Poland.