Credit card protection ‘important’
November 16, 2007 by admin
Filed under News, News-Credit-Cards
Consumers who use credit cards on a regular basis should look to take out payment protection insurance (PPI), it has been advised.
Shane Craig, managing director of Paymentcare.co.uk, has suggested that PPI can be as important for credit cards as it is for personal loans.
He acknowledged that currently more people were taking out PPI for loans because the amounts were often higher than the average credit card balance.
However Mr Craig advised: “For people who tend to max up their credit cards, protection is just as important.”
“With credit cards being the most expensive way of borrowing money, the cumulative effects of not being able to make your repayments are punitive,” he added.
Mr Craig went on to confirm that payment protection on any borrowing was something to consider because events such as job loss and illness can come completely out of the blue.
In December 2005, 47 per cent of consumers had unsecured borrowing of £10,000 or more. The average household owes £7,650 and the overall British consumer debt is £1.3 trillion not counting mortgages.
