What To Do In Case You Lose Your Job While the Payroll / Salary Loan Has Yet To Mature
SALARY LOAN – Here is a guide on what you can do in case you will lose your job while your payroll loan has yet to mature or end.
Undeniably, if you are an employee of a public or private company, there are a lot of options that you may consider in terms of emergency. These include loan opportunities.
In fact, you can also apply for a loan to make a big dream happen. Several loan offers are multi-purpose. Usually, these are offered by banks and lending firms to company employees.
If the company is accredited to a certain bank or lending firm, its employees may avail exclusive loan offers like the salary loan. Also called as payroll loan, this type of loan offer usually deducts the monthly amortization directly from the monthly wage of the borrower.
What if you lost your job while you still have a payroll or salary loan?
Although it is unwanted, this case is really possible – an employee losing his or her job at the time that his or her loan has yet to mature. Undeniably, this is a very confusing situation on what to do next.
If the loan has yet to mature, the borrower has to continue paying for the monthly amortization. It may be twice the burden to the borrower – having bills to pay without having monthly income due to temporary unemployment. Here are the next things that you can actually do:
Plan things out
Based on The Money Advice Service, it is best to get an overview of all your debts including your salary loan. Do you have some savings? Can it pay for the remaining balance of your loan to the bank or lending firm?
If you have savings and it can, your problem is solved. However, if you don’t have enough money to pay for it, it is best to sort out the following:
- loan balance
- length of time that covers the entire loan balance
- interest rates implemented
Check for resignation benefits
If it was your choice to leave you job, you may be receiving some benefits from the company. This happens most especially for those who are on a regular status.
Check for your resignation benefits. You may be given the so-called “back-pay” which you can use in paying for the balance of your loan. Paying for it in advance can bring you benefits like saving from the interest implemented on the loan.
Talk to the lender
In case you both have no savings and as well as back-pay, it is best to talk to the lender about your options. You may arrive at an agreement like extending your loan term so you will have lighter monthly installments. It is also through contacting the bank that you can ask for a full copy of your loan details.
Moving to a new company
There are cases when a salary loan has to be transferred to another company following the employee losing his or her job and moving to another firm. In this case, it is important to reach out to your previous company, the bank or lending firm, and the new firm where you are working at.
Your loan may be transferred but it may acquire some additional charges. If you have a large amount of money, it is best to just pay off for the loan most especially if there are just a few months left before the loan’s maturity date.
Make new source of income
Aside from looking for a job in another company, you may also make use of your talent to come up with new source of income. You can run a small business at home or any other thing that can give you profits whether it is big or small. It can greatly help you pay off for your loan.
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