Credit card charges confusion

simple_simon_says

Hi Im probably being really thick but thought i'd ask anyway
My wife has a credit card with MBNA and is trying to pay it of monthly.

I have just read her statement and she pays £39.01 per month in Payment Protection Cover.

I have a couple of questions ( well several actually but i'll start small before i bore you all to death)

What is it ?(is it the same as the PPI stuff i keep reading about)
Does she have to pay it ?
Can she claim it back ?

Which is the best way to get rid of this debt as at the moment she is actually adding money to the debt by paying the minimum amount which is outweighed by the interest charged and the Payment protection cover.

Thanks in advance

stephane_2

Personally I would cancel the insurance straight away, you can do that over the phone most of the time. Thats an extra £39 going towards the debt. Payment Protection is generally taken in case your wife was going to loose her job so CC provider would take over payments for a certain amount of time, but most of them have so many restriction in my own opinion its not worth it.

stephane_2

I don't know what is her credit card balance and interest but if she is paying only the minimum every month and paying as well payment protection then it is likely that the money going towards paying the debt represent only a few quids....she'll be paying the debt for the next 15/20 years at this rate