Credit card protection

When you take out a credit card or loan of any kind you will normally be offered Payment Protection Insurance PPI.

This credit card protection will pay your debt if your circumstances change and you are unable to repay it. For example it could come in handy if you are made redundant suffer a serious illness or an accident. But compare conditions carefully when taking out a policy to make sure you understand the clauses and that they suit your circumstances. For example the self-employed are typically excluded.

PPI will only pay out for a set period of time - usually between 12 and 24 months. There is also a waiting time for payments to begin if you do claim on your credit card protection policy.

Also make sure to shop around as costs vary widely in this competitive market. Credit card protection can be taken out at the same time as the credit card itself but it can also be bought at a later date. Stand-alone payment protection products can also be purchased from direct providers rather than your credit card provider.

Moneyextra.com recommends you take independent financial advice before acting on any article

2009-02-17 00:00:00 © Moneyextra.com