Payment Protection Insurance

davery83

I've just read an interesting article on moneysupermarket (here: http://www.moneysupermarket.com/MediaCentre/RateAlerts/RA47.html?Goal=3rdparty ) and thought I'd check out what I'm paying on my debts.

I'm confused about what I pay on my loan, in the Contract Information I have the following with totals:

Cash Loan
Insurance Loan

I take it the insurance loan is the PPI? I hope so, because I work that out to be 60p more expensive than I could get it elsewhere that would cover me for £400+ more on my income!

Any advice would be appreciated.
Thanks

gyzmo

PPI is one of the biggest cons, alongside instore warranties, ever permitted by law. The conditions attached to them (so that you can only claim if its a blue moon) and the cost of them make them practically worthless.

Personally, I'd put the money into a savings account with a good interest rate, and use that money should you fall on hard times.

Another thing is the consequences of debt. What would a creditor do if you don't have the money? You can't pay what you do not have, so, asides adverse credit history, why have the payment protection in the first place?

davery83

gyzmo wrote:

PPI is one of the biggest cons, alongside instore warranties, ever permitted by law. The conditions attached to them (so that you can only claim if its a blue moon) and the cost of them make them practically worthless.

Personally, I'd put the money into a savings account with a good interest rate, and use that money should you fall on hard times.

Another thing is the consequences of debt. What would a creditor do if you don't have the money? You can't pay what you do not have, so, asides adverse credit history, why have the payment protection in the first place?

Thanks for the reply gyzmo, you point out some good things but I've still not got an answer regarding the 'insurance loan'.
I understand what you are saying regarding PPI, but if I were to put the £35 it cost me into a savings account it would take an age to save up the £600+ outgoings it costs me a month so it is well worth the money for me in my opinion.

hawk

PPP was a good help to me I was made redundant and Lloyds TSB covered me no probs.