I am also sailing in the same both as all other here.
I started my join in (Dubai) UAE in Late 2010 and as usual I also got into credit card World and I owe following
1 Car Loan – 40000 AED (can be sorted out by selling the car)
5 Credit Card – 60000 AED (aprox)
Everything was fine till last November and I was paying all my cards, suddenly due to some management changes i have been ask to leave the company, since I had good relations with my previous employer I was given an option to resign instead of termination.
Within two weeks time I got another job at the same salary but the project for which I joined is no longer in production and during my probation period I have been terminated from the job.
I have my family (wife & a kid); I do not want to fall in to any problem.
Company has given me a termination letter as they no longer need my services.
Now my question to this forum is how does the employment termination letter can help an individual from bank debt, I remember the credit card sales agent promised that in case if due to any reason I lost my job I will be covered and bank will claim it from insurance.
how true it is?
I need advice how can secure my self and family incase i am not able to pay back to bank.
It sounds to me like you are referring to some form of insurance on the credit card or loan that if you lose your job through no fault of your own, the payments will be made for you by the insurance.
Do you still have a copy of the original agreement for the loan?
Have you spoke with the person or bank where you took the loan out? That is going to be a starting point.
How long were you working for the second company? This may impact your being able to claim on any insurance you may have.
Also, resigning may also be viewed as leaving on your own free will, which means any insurance may not cover the card(s).
Are you back working now?
Let me know and we can look at this closer.
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