Is Payment protection worth it ? plse help !

scaredandbroke

I would really appreciate some help. I have 2 loans totalling £18506, one from Egg and one from Barclays. When I took these out last year I opted for full PPI on both. However, now looking at them I can see that PPI adds so much to the final amount ! With the egg loan, the amount I borrowed was £13506, but the PPI increases this by almost £4000 !!! and the barclayloan, it was for £5000 and I took it out in Jan 05. Now, after paying £165 every month for a year, I still owe £4,953 on it !!!

I just want to pay these loans off asap, so am now thinking to do away with the PPI completely, or at least reduce it just to accident and sickness cover. This would save me so much money and it just seems insane to me to be paying an extra £4000 !!!! but im worried about doing away with it completely. I have a secure full time job with the local council, but what if I fell ill ?

I would really appreciate other peoples experience with this - is PPI worth it ? Otherwise, I just dont see a way out. I have spoken to Payplan but they said they cant help me as I can make the monthly payments.

southernscouser

Hello S&B and welcome to MSE.

Wow, this must be the 4th post today about PPI! :rotfl:

As I have said to the other posters I personally think it's a waste of money! The problem is you are meant to cancel it within 30 days of taking it out!

However, there is a possibility of getting out of it. Read this thread for more info.

*Louise*

I think it is a waste of money as well, especially at that price! - cant you try getting an accident and sickness policy from a cheaper provider? Then you have peace of mind but less cost.

rainbowseeker

Hi S&B,
Yes, have to agree with others, I reckon it's a big fat waste of dosh and I've read that if you ever did need to claim they use every excuse under the sun to try to get out of paying. I knew all this when I took out a loan with Egg for £5000, but because I was desperate (the money was for consolidation - HAH! now going down the dmp route) I fell for it. The lady I spoke to implied that I would be more likely to get the loan if I opted for PPI. The total cost was £6576.50. Without the PPI the interest for the £5000 loan would have been £856.50!
Say NO to PPI - it's not worth it.

BobProperty

I think (if I'm allowed to mention it) that one of the Motley Fool regulars used to work for a bank and sell this product. Now he's "on the other side" I don't think he'd recommend it.

IN_LIKE_EVERYONE_ELSE!

con con con, I KNOW a guy who had an accident, lost a kidney, collapsed lung, damaged his heart and was on life support for three weeks, the insurance company said he wasn't ill enough. True story.