0% and Repayment Protection

Weggy

Had a good search for this, and surprisingly found nothing... thought it would be a common question!

Anyways, what I'd like to know is, how does Repayment Protection on a credit card work against a 0% deal? What I'm looking at doing is opening a 0% card and balance transferring to it. What I don't want to do, is take out repayment cover and find that's then charged at 16.9% or whatever.

So, say I transfer £5,000. Repayment protection is 69p per £100, so repayment protection would cost £34.50 a month. As it's 0%, I'd be only paying the minimum payment, so would this mostly get eaten up by the repayment protection?

Hope that all makes sense! Anyone have any ideas?

CLAPTON

Whyever are are taking out PPI on the CC?

If you are concerned about being made redundant / critical illness etc then look into insurance separately ..much cheaper.

If you did take out PPI, then it wll be deducted from your payment first so if you were paying say 2% (100) per month then 34.50 would go to pay the PPI and 65.50 would repay the capital owed.

Weggy

Thanks for that :T

Where do I get this insurance? Obviously I've got my own critical illness etc insurance through work, but does that cover making my credit card payments?

So, is the general opinion here that PPI is a no-no on credit cards?

Weggy

Yep, get sick pay. If I died, the wife would get a tidy payoff yes...!

No dependents at the moment, but can see that changing in the next 18 months....

CLAPTON

You need to look at how much your current insurance will pay out and for how long and in what circumstances and compare this with your essential outgoings (including the CC payments).

Similarly, if you want redundancy insurance you need to consider whether redundancy is likely, how long you would take to find new employment and how much you need during this period. The PPI only pays your monthly minimum payments on the CC for a limited time and is typically much more expensive than buying separately.

Weggy

"How likely is redundancy?" Isn't that the hardest question to answer these days?!?!

I'd reckon I'll be ok, and have enough cover.

Thanks for all the advice - much appreciated :beer: