Credit Card ’s Talk

One way to save money on your credit card bill is to not take the payment protection insurance, this is a waste of money and the only one who will benefit from this is the credit card company.

Some people don?t realise that they are actually paying the payment protection insurance it can be hidden in with other costs, those of us that do realise we pay it think it?s a must why! Because the credit card company says so, we assume that if we loose our jobs or fall ill and have to have time of work, that with the (PPI) in place that we are covered well this is not all ways the case. Most people who take this cover with their credit card think they?re totally covered if something bad should happen, well I am here to tell you that you?re not a lot of people think their debt will be paid off for them, but most companies only pay a years payment then you have to pay the rest of the balance. Even if you?re still off sick or not working it?s your responsibility.

Most companies take a while to sort your claim out so at the start you will still have to find the money for your payment, and if you?re only off sick or out of work for a few months, you?ll properly find you?ll be back at work before your claim is sorted.

The amount you pay for your payment protection insurance is usually between 70p-80p for every ?100 owed, these charges are usually hidden in with other charges for your credit card, and only come to light when the amount that you owe is at a high level. This is another way the credit card companies gain their profits.

If you pay your balance off in full at the end of every month I would not bother even looking at this policy, and if you?re self-employed I would not bother with this policy either as you?ll not be covered if you become unemployed.

I understand that when you take out a credit card you?re looking for a bit of security, but nine times out of ten times these payment protection insurances will not cover you and will only cost you money in the end. There are some companies that are more trustworthy than a (PPI) including Pay-protect and Good insurance they will pay more to your debt and at half the price you would pay on an payment protection insurance cover.

Peter Kenny is a writer for creditcards-gb

For additional articles and an extensive resource for everything about credit cards, please visit us at http://www.creditcards-gb.co.uk and http://www.creditcards2go4.com

How many monthly bills do you get? You may have a mortgage bill, a car payment, heating, electricity, gas, telephone, television, and that doesn?t even begin with your credit card and store card payments. The fact of the matter is that people today have more monthly commitments than ever before. And with all these various bills it is very easy to forget to pay one on time.

Then there is the wholly separate issue of whether or not you can afford all your bills. Sometimes we may simply have over extended ourselves financially and in such situations we may not be able to pay all of our bills as they fall due. And what if you were to lose your job, or become ill or otherwise unable to work? Even if this is only for a short time, you will have some very real problems meeting all your monthly bills.

Penalties

This can be disastrous. First of all most creditors will slap late payment penalties and other administrative charges to your account if you are late. Some may recall or try to repossess assets if they have security over them. This is most serious in the case of your house but can also apply to your car or any other purchase you have made by instalments such as a television, or computer.

How can you provide for such an outcome? Well having some savings is a very good start. This should be able to cushion you for a few months should you lose your job. Then there is the fact that it is perhaps not so wise to rack up so many commitments that you can?t reduce your outgoings at short notice.

Insurance Protection

Another option to consider is payment protection insurance. This can be very helpful and is designed specifically for situations such as these. How it works is you pay an amount extra on top of your monthly bill. This is automatically added to your bill and depends on how much you have outstanding for each bill. For example, payment protection insurance on a credit card might be priced at ?1 per ?100 you have outstanding. What happens then is should you lose your job through no fault of your own, or should you become unable to work due to accident or illness, then the insurance should step in and make your repayments for you so that you don?t fall behind and rack up extra fees. This can be a great assistance to you financially, at a time when you need it most.

Joseph Kenny is the webmaster of the credit card comparison site http://www.cardguide.co.uk/ and also CreditCards121.com for the latest credit cards available in the UK. He also writes for the US comparison site Credit Cards Info.