Payment Protection Schemes

payingfornowt

Morning all,

I am after some informed opinions as ever!

I have cut my debts down to just one loan and one credit card which I can manage to overpay to clear my debts as fast as possible (aug 2010 currently). All this was done with a bit of cutting back and the help of the DFWers and MSE.

I feel good that my head is out of the sand and I am moving in the right direction now but cant help kicking myself that I will be almost 30 by the time I break even, what a silly boy I have been!

I have been in a new job for 6 months, I moved from a very secure job with a great company to a better paid one in a more commercial environment however in the current economic climate I do not feel too secure as I think that my position is a luxury that if things take a turn for the worst most companies could not afford.

I have researched payment protection insurance, all we hear is bad things about it but it seems to me like a valid product if researched. I seem to have 3 options.

• I can insure my personal loan repayments of £267 for 12 months if I lost my job. This wouldn’t give me total peace of mind but it would certainly be one less thing if the worst did happen.

• I can insure for up to an income of £1000 per month (could cover living costs) for up to 12 months if I lost my job for up £34 per month.

• I can stay as I am and put the £34/£8 towards paying off my debts.

These quotes were with British insurance.

If it does what it says on the tin it might be worthwhile for peace of mind.

Has anybody any experience with these? Are they worthwhile? If I was on one of these schemes and became unemployed would I be giving up any benefits I am entitled to?

Thanks for reading!