Depending on your occupation, payday loans may be the best alternative to your pocket. However, because it is a salary credit, it is essential to find out what happens in cases of dismissal.
I got fired, what do I do with my payday loan?
When this occurs, you may need to go to the lending bank to renegotiate the payment. However, you will notice that the interest rate will increase, but it is important to know that this is normal.
This is because the bank will no longer have the automatic payday discount and therefore loses the guarantee that the loan will be repaid. Ideally, go after the bank to try to negotiate debt.
If you have changed jobs, find out if the company has any agreements with payday-related banks. If the current bank is different from yours, it is worth checking if it also works with payday loans. Making a new loan to pay off the old one can be advantageous to evade interest rates.
Another point to keep in mind is that when we sign a payday loan agreement, we authorize the company to discount up to 30% of the termination amount to pay an amount.
When the contract is signed, it is no longer possible to go back. Be sure to check it out and see if this item is on it. It is important to remember that even if the company discounts 30%, the debt may still exist as it may depend on the amount you owe.
Payday loan on job change
Regardless of whether you leave or get fired for cause, know that the situation is the same. Therefore, it will be necessary to pay the debt to comply with the signed contract and the company can discount the amount of 30%. However, it is worth remembering that for this to happen, it is necessary that this item needs to be within the contract.
When a job change occurs, it may be possible to transfer debt to the new company. However, you must have an agreement between the bank you borrowed from and the company before a possible exchange is authorized.
If the attempt is successful, the amount will continue to be directly deducted from your salary until the debt is paid off.
Got more questions? Seek help from your new company human resources to clarify more questions. It is important to note that if you were fired for good cause and have no other job in view, you will be unable to perform this portability.
And when does the company go bankrupt?
It doesn’t change anything either. Debt will continue to exist even if the company goes bankrupt, it still owes some fees to employees that will be related to vacation, notice and the like. If repayment happens, be aware that this is a good opportunity to pay off your debt.
Payday-deductible credit card
Did you give up formal employment and want to be self-employed? So know that it is worth keeping an eye on the alternatives that the market offers. To help you on this journey, we have separated a special article for you to learn more about the Self payday payday Credit Card. To know more about him, just click here.