Being unemployed is a difficult time for everyone, but even more so if you have credits in progress. Then you wonder how you will repay.
If you have taken out a credit for your car, have you thought about borrower insurance? This one allows you to face the situation more serenely.
How to repay your car loan following the loss of your job?
In an increasingly complicated economic context, it is not uncommon to be fired and many sectors of activity are concerned by this an obligation to dismiss for lack of sufficient orders.
Most employees then have to face a repayment of loan and especially auto credit. In this case, no longer having the same budget, the load can very quickly complicate the management of your budget. It is therefore essential to think of this possibility before contracting your loan.
The borrower insurance can help you deal with this new situation. It is not mandatory, but it is very useful in this case. Of course, you are entitled to unemployment benefits, but they do not provide the same standard of living.
What are the benefits you can benefit from?
If you have insurance, you will be more confident about this new situation. Indeed, it replaces you to take care of the monthly payments. Be careful however: in all contracts there are exclusions or special conditions that you must check before signing the contract.
The waiting period is generally three months during which you must repay your monthly payments without insurance. That’s why it’s best from the beginning of the loan to try to save a bit to deal with it. Then, it should be known that the care does not exceed a certain number of months, duration also specified in the contract.
There are also situations that are not compensated, such as:
- Employees having resigned.
- Employees on short-time work.
- People are at this point in pre-retirement or in a trial period.
- Employees arriving at the end of their contract when they are on fixed-term contracts.
Unemployment benefits to close your loan
Unemployment benefits should also allow you to honor your monthly payments. However, some criteria must be met in order to be supported and these fall relatively quickly. In any case, if you really have problems managing your budget and you do not have unemployment insurance, you have one solution: the credit buyback.
You may also be eligible based on your seniority in the company where you worked for severance pay. Put that sum aside. It can help you pay your credit if you are having real difficulties.
If you can not benefit from unemployment benefits, know that you can still benefit from aids. And finally, if you only have a car loan and you have insurance or compensation paid by Pôle Emploi, you should be able to cope with the credit, even if it requires an effort to manage your budget at daily.
Try to save money on workstations that allow it, such as hobbies, child care, vacations, etc. These deprivations do not last and you avoid all problem situations that may affect your comfort for a very long time.
Be careful and be sure to spread the charges. If necessary and if you can, ask for help from someone you trust. This one can spread the refund.
In summary :
Remember to buy insurance in case of loss of employment before signing the loan offer, it will be of great help in this situation.
From the first months of the loan, try to put money aside in a savings account so that you can best resolve your situation in case of unemployment.
If you do not have insurance, consider contacting a credit redemption agency, especially if you have more than one. It allows you to spread your debt and support lower monthly payments.
Before signing, be careful and look closely at the terms of the loan in detail as well as those offered by the loss of employment insurance. Know that you can choose it freely according to the advantages it presents. Make comparisons to find the one that suits you best. Think carefully, saving a few euros sometimes offers you significant disadvantages. Compare the warranties first and then only the cost.