Have you taken out a loan and unfortunately find yourself unemployed? It becomes difficult to repay the monthly payments of your credit? How to deal with this problem?
What costs are covered by the monthly payment of a loan?
The monthly payments of a credit integrate the total costs of the loan, namely: the repayment of the loan amount, the interest rate and compulsory credit insurance.
Interest represents the cost of borrowing for the financial institution that loaned the money. Compulsory credit insurance covers risks in the event of death. This means that if something happens to the credit holder, it is the insurance company that pays the monthly payments to the bank, not the relatives.
Optional credit insurance: unemployment and disability coverage
It is possible to take out optional credit insurance which covers the borrower in the event of unemployment or disability. When you find yourself in a precarious situation, it becomes more difficult to assume the repayment of a loan.
This insurance is available with any credit made in Switzerland. It assumes the reimbursement of your credit in the following situations:
- Involuntary unemployment : you must have been dismissed by your former employer. If it is a voluntary departure, you are not covered.
- Illness : if a serious illness prevents you from working and results in a loss of income preventing you from paying off your loan.
- Accident : if an accident results in prolonged work stoppage or disability, the insurance covers the monthly payments on your loan.
Credit insurance covers your monthly payments from the third month of inability to pay and for a year.
What to do if you haven’t purchased optional insurance?
If you are suddenly unemployed and are no longer able to bear the financial cost of your credit, you can use debt reduction.
It is a solution that allows you to adapt your budget to your new personal situation. The chosen financial partner manages your debts and helps you restore your financial situation.
If you wish to restore your financial situation during a period of unemployment, we invite you to contact Multicredit who can provide you with financial assistance. Professional financial advisers will listen to you and help you find a solution that suits your situation!