Tips to Manage Loans When You Lose Your Job
Bangalore: Money plays an important role in our lives and so does jobs. Having a job, anyone will feel financial freedom and can plan for a pleasant future. But at times, jobs might not be able to fulfill all the needs and requirement. In these types of situation, loans can also fulfill the unfulfilled needs.
However, the same loan can become a severe headache if the loan borrower looses his/her job. Paying up the loan EMIs can become difficult in such cases which in turn can lead to some serious legal problems. Below is the list of ways to manage loan in case one looses his/her job, as listed by Rediff.com.
1. Estimate the Exact Financial Assets
Estimating the exact value of all the financial asset is one of the mandatory tasks before applying for any loan. Insurance, mutual funds, bonds, provident funds and gratuity funds comes under the financial assets. A proper valuation will give you an idea, how much loan to take from the bank so that the loan does not become a roadblock, even if you lose your job.
2. Prioritize the Loans
It might not be possible for you to repay all your loans at the same time. In this type of situation, it is always advisable to prioritize the loans according to their terms and conditions.
For example, it is always better to pay the house loans on the first hand rather than the auto loans. The real estate prices do not fall down easily. It is always better to repay the housing loans and to become an independent owner of the house.