Payment Protection

roadskill

Can anyone help me with this.
I have been claiming on my credit card payment protection (3 credit cards MBNA, Mint and LloydsTSB) since February 2009 after becoming umemployed. The payment protection will only pay for 12 months and they are currently paying only 5% of the card balance which really is only covering the interest, patment protection premium and a little of the balance from the monthly statement. What happens after 12 months as I still haven't found a job and because of the recession and credit crunch I don't reckon I'll get a job at the 12 month mark. Will this mean I will be liable to continue the payment myself and not be able to make another claim?

Tixy

Most payment protection does only pay for 12 months, although it will depend on the specific terms of your PPI.

After that you will be liable to make the payments yourself. If this happens and you can't afford to do so then remember that credit card debt is low priority. If you cannot afford it after priority costs then you would need to write to the credit cards to see if you can come to an agreement with them. Sometimes people on benefits are only able to pay a £1 monthly token payment to their unsecured debts (this will damage your credit rating as your card providers would default you - but sometimes is the only option for people).