Is there any point in starting a payment protection plan

Beverley

I have been slowly paying off a huge credit card debt by using interest free balance transfers and paying off a set amount each month. My finances are very limited but if I continue at the same rate it wil take another 4 years to pay off the debt completely.

My concern is that my employment contract is renewed annually in June (it's been renewed 4 times so far) and, in these credit crunch times, I fear for my job and my ability to continue paying my mortgage and credit card debt.

Is there any point in taking out a Payment Protection Plan for my credit card and mortgage? I know that these plans are arranged so that you have to pay in for so long before you make a claim but I'd imagine that 5 or 6 months would be sufficient.

My other concern is that my employment is not permanent - would this render any PPP useless or are there plans availabe for people like me?

jamalfatty

PPI usually requires those on fixed contracts to have had it renewed a certain number of times before it pays out, at least twice I think the norm is.

Whether you should take it is up to you, would the stress of not being able to pay it outweigh the increased length of time it will take you to clear it off if you do take it?

Shop around if you do decide to take it out, you dont have to have this insurance through the credit card company and will probably find it cheaper elsewhere.

Beverley

jamalfatty wrote: »

PPI usually requires those on fixed contracts to have had it renewed a certain number of times before it pays out, at least twice I think the norm is.

Whether you should take it is up to you, would the stress of not being able to pay it outweigh the increased length of time it will take you to clear it off if you do take it?

Shop around if you do decide to take it out, you dont have to have this insurance through the credit card company and will probably find it cheaper elsewhere.

Thanks for this - I had a vague idea that I could still get PPI even if I didn't have permanent employment - where's the best place to look - a broker?

jonesMUFCforever

The law stipulates that if you have worked permanently with the same company even through an agency then you are a permanent worker and eligible for PPI.
As other posters will tell you - shop around for the cover most suitable for you and get a written answer confirming that you will be covered for unemployment cover.

Beverley

I've decided to get some PPI as I'l know in June or July if my job is safe. I work in a school so I suspect it will be but I'd like to err on the side of caution.

I'm struggling to find a company who will offer me PPI for my credit card debt of £6k (it was £12.7k in December 2006 so I'm pleased I've managed to reduce it to 'just' £6k in the last 2 years) However, the one recommended by Martin only covers CC debts of up to £5k and others just seem to cover mortgages or other loans. Does anyone know where I should be looking?

jenhugs

Can you not get PPI through your credit card company to actually protect your credit card balance?

Beverley

jenhugs wrote: »

Can you not get PPI through your credit card company to actually protect your credit card balance?

I was under the impression from this forum that the credit card companies were the worst people to go to for PPI.