We got a personal loan and added unemployment insurance on the loan. The premium for the unemployment insurance was $24.00 a month on our loan, in case my husband lost his job, which he did the following year. The insurance made 12 payments, and after that we got behind on our loan. We got caught up a couple of months later.
We decided to do an adjustment on the loan by canceling the insurance, which would drop our monthly payments. Long story short, we went to sign the papers, and the amount on the paper was a lot lower than what we were originally told. It was talking about escrow and property (we have an unsecured loan). I asked why it was talking about it and was told to just ignore it.
I happened to notice that the maturity date on the loan was 2019! When I asked about it, I was told it depends on how many adjustments you will receive, because these are only temporary and for 5 months. I refused to sign the loan because things weren't adding up. They tried to make me feel guilty for having them draw up the papers and tried to make me feel stupid that I wouldn't sign it, because it was benefiting us for a while anyway.
So! Read everything no matter what. Look at everything under a microscope! If your gut is telling you not to sign, or you just don't feel comfortable doing so, don't sign. If I had signed, we would have extended our loan and would have been paying for 12 years for the original amount of the loan.
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