Citibank  
Question?
 
　 Q1. During the economic slowdown, my assets are shrinking and liquidity is tight. What should I do to weather this financial storm？
  A1.
． The economy and individual finances are relatively unstable during the economic downturn. We suggest that you prepare or reserve an emergency fund sufficient for living for six to 12 months.
． If you still have extra assets after you have prepared the emergency fund, we suggest that you consider paying off part of the debts and start from the loans with the highest interest rates.
． If you have difficulty paying back loans on schedule, you are suggested to negotiate with your creditor banks. The banks might lower your interest rates, allow you to pay only interest for now without paying principal, or lengthen the terms of your loans.
． Spend wisely during the economic slowdown. Think twice about whether you do “need” it or just “want” it when shopping.
 
 
　 Q2. I had some impulse shopping earlier during department stores' annual sales to reward myself. But recently my company suddenly makes us have no-pay leave and my monthly salary has drastically decreased. As now the economy is bad, I would be left without liquidity cash if I pay off all my credit card bills. What should I do？
  A2.
． Considering your situation, we suggest that you reserve more liquidity cash, for instance, an emergency fund for living for six to 12 months.
． You should still pay your credit card bills on schedule, which will ensure that you have good credit records even if you cannot pay off the balance.
． During your future consumption, you can consider applying for credit card installment payments. Now many banks provide the installment program for card consumption above a certain amount of money, with many charging zero handling fees. Even if they do require handling fees, the fees would be lower than revolving interest in most cases.
 
 
　 Q3. I am now a student. Previously for urgent use I borrowed some money by using my credit card's cash advance service. But now with only income from my part-time works, I really cannot afford to the high revolving interest. How can I lighten the burden？
  A3.
． First of all, we suggest that you use the financial calculator function on our website. By keying in relevant expenditures such as each month's revolving interest and the amount of your cash advance, you will have a better understanding of your actual financial burden and then you can make a savings and debt-repaying plan.
． You can also negotiate with your bank to see whether the interest can be lowered.
． Some credit card issuers offer the “balance transfer” program, which means the banks help credit cardholders pay back the credit card loans they have owed in other banks and charge lower interest on this amount of debt. However, we would still like to remind you to spend wisely in the future and avoid accumulating more debts.
 
 
　 Q4. I just bought two apartments in Taipei City several years ago. But with the economy suddenly taking a downward turn, housing prices have slumped and the market has drastically shrunk. I almost feel suffocated dealing with my mortgage of nearly NT$80,000 per month. How can I reduce my mortgage burden to the minimum
  A4.
． Closely watch the preferential mortgage programs offered by the government, for instance, the central bank's NT$200 billion special program, and the home purchase and repair loans, residential subsidies and the young people's home-building program introduced by the Construction and Planning Agency under the Ministry of the Interior. Those qualified for the regulations can apply for low-interest mortgages or the two-year zero-interest preferential program for a mortgage amount of between NT$2 million and NT$3.5 million.
． Strengthen your interaction with banks. Transferring all your deposits, fund investments or credit cards to your creditor banks can make it easier for you to obtain lower interest rates.
． Take the initiative to negotiate with banks and apply for lower interest and an extension of the grace period. Banks would not like to see their mortgage clients breach the contract as that means banks can only retrieve capital from the auction market through various thresholds. No matter whether you are non-voluntarily unemployed, you can apply for loan extension from banks and only pay back interest, excluding principal, for the moment, as long as you are financially difficult.
． Apply for mortgage transfer service to obtain other benefits from banks. Mortgage transfer comes with transaction costs, including handling fees and legal document fees. Relevant costs for a NT$5 million mortgage would be about NT$15,000. Many banks have long-term cooperation with some agencies that produce legal documents and they would charge lower fees. Some banks even offer exemption of handling fees and legal document fees for the clients with better credit records.
 
 
　 Q5. Recently there have been rumors circulating saying that my company is going to lay off people. With mortgages of NT$20,000 every month, I'm really worried that I can't pay off mortgages once I lose my job. I've heard of a product called “mortgage unemployment insurance.” Can you analyze its pros and cons？
  A5.
．

 Recently many banks have cooperated with insurers to launch mortgage life insurance, offering basic life insurance and helping clients pay off mortgages once they are unemployed or disabled. For instance, in Citibank’s Homecredit or Amortized Homecredit Mortgage plans, insurers will pay off mortgages for our clients once they lose jobs. Insurance premiums are decided based on clients’ monthly mortgage payments when they become insured.

We suggest that you inquire your banks to see whether they offer relevant products. At the same time, you can compare products provided by different banks to choose the best policies in terms of insurance payouts, guarantee and insurance premiums.
 
 
 
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