Need a bit of reassurance

Beanietdc

Hello,

I have a feeling that I may get a barrage of people screaming at me but I just need a bit of reassurance!

I have just over a year left to go on a 5 year loan which costs me £260 a month. I have got payment protection on this loan and want to know if it is worth having or should I try and cancel it? I don't know how much of each months payment it the protection bit.

The reason that I am reluctant (and logically my reason for cancelling it) is....

3 years ago my other half and I were both made redundant from the same place at the same time. We were both completely financially independant at the time (and still are) as we have places of our own - both with mortgages. When I was out of work (approx 6 months) I had to make claims on all sorts of insurances... well mortgage protection and loan protection and didn't really get very far.

In the whole six months I was out of work I never saw a penny from the mortgage protection people (blame the bimbo at the job centre.... long story!) and only ever got about £150 from the loan people - at the time even that was a god send though!

I am now 2 and a half years into a job with the council which, lets be honest with local government, I could be in until the day I die if that's what I decide I want and have turned into a crazy debt free wanabee!

I just want to know what people think about the payment protection on the loan? I guess I always take it out because I was too scared to think of the consequences if I couldn't pay it - exactly the situation I found myself in and they were b*gger all use anyway.....

I know this is going to be a daft question but..... anyone got an opinion? :rotfl:

Beanietdc

Can I also mention that because of a bit of balance transferring to low rate LOB cards I managed to close on credit card today.... not exactly cleared but I feel like I have acheived something anyway!

lynzpower

Most PPI is front loaded, so chances are you may have paid it all off already. they are sneaky like that - by the time youve twigged on, its too late. I work in LA and I agree, its very secure.

Do check, it might not even be a decision you COULD make

CLAPTON

you'll probably find it either impossible or very difficult to cancel...and is it worthwhile.?..i think you answered that yourself.
whats done is done now but without PPI your loan would probably have been paid off by now.

Beanietdc

Noooooo! Don't tell me that Clapton!:eek: :eek: :eek: :eek:

I think it was always over 5 years anyway - just would have been smaller repayments.

Toto

I tried to do this on a loan once. In order to get rid of the extra monthy payment I had to close the loan and open a new one. Problem was their computer system wouldn't let me have the new loan because I was already in debt to them. I thought this was a dumb way of doing it. All I wanted was a lower monthly payment. This was with Barclays btw. Needless to say i just paid the loan back and never took out insurance again. I do however have a private insurance that covers all credit (cancelled now, not much good for me in this mess)

bargainbetty

It's definitely worth asking though, as it is a complete rip off. It rarely kicks in until you have been off work/sick/dead for 60 days, and as you have found out, it's incredibly difficult to actually squeeze the pennies out of them.

If you have any credit cards, make sure it's not on them either. More rip offs!

Good luck x