Sir Sidney Snot
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Yeah it's a waste of money |
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The Fixer
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Only insure that which you can't afford to lose. I wouldnt in this situation. |
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Chadders
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You can get your own payment protection from a private broker for a total of about £200. Don't get it from the finance company. It's a total rip off. |
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Veston Pants
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PPI is a real pain. It is over priced and badly sold. Check your options. It is illegal for them to force you to take theirs. Shop around or don't bother at all would be my advice.
xxR |
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KANGA
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There's never any guarantee. I have never taken out the protection! I'll deal with problems as they arise!! Never had to thankfully - don't see why you should pay that kind of money if your in a good job and everything is pretty secure. |
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hardcore_pawn
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don´t bother with the protection, even if you are fired made redundant the loan is unsecured so you won´t loose your house if the worst comes to the worst, inform the bank immediately that you intend to pay, but your circumstances don´t allow they won´t then send the bailiffs round to take all your possesions, besides if you put the 50quid a month into savings then you can use that to help pay off the loan for a couple of months while you find a new job. |
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Del Piero 10
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Nasty Ts & Cs. You might ask if they have a cheaper option. Barclaycard hammer you £46 a month for card protection if you get the full insurance but only three and a half quid for the more sensible option. Alternatively get a savings account or separate insurance policy from somebody else. |
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sallystrawbery
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No it is a rip off, and the cover is limited,save the £50 and if u cant pay u nave the money there and if you dont lose your job you have a nice stash in the bank. |
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letschallengethesebusinesses...
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As with most people, I agree, don't go for it, I am afraid the last person who said go for them is indeed in the minority.
This insurance is the same as any form of insurance, it is just a means of reducing risk should something go wrong. But with an insecured loan there is no real assett to lose, just some form of debt that may build up and can be negotiated down.
If you go to Martin Lewis's website given below he explains the point in many cases of not having insurance, from mobile phone to full home contents, it is all about risk management and you view of risk.
Why pay £10 a month to insure your phone when if you lose it you can buy a new one for less than a years insurance or just wait till your next renewal? Or why insure a low value car fully comp if it cost you £200 more? etc.
The two final things that may make you decide are below; two examples of people I know;
1. One friend is in financial difficulty through not working and has gone to the citizens advice bureau and negotiated to pay his debts back at £1 a week. That should cover you a bit. Before going that far, just talk to the bank and they will help you.
2. Another friend took payment protection on his graduate loan from one of the big 4 banks and was made redundant. They refused to cover the loan and continued to charge him for it quoting something in the small print, some get out they had put in there.
Not only did they do that, when he went back to work he tried to cancel the payment protection as it wasn't obvious worth the paper it was written on but oh, no the contract was binding then.
Lesson, banks are not nice! And do as much as you can to not give them any money. It is a war and treat it as such with them. |
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ghostwalker077
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honest you be giveing the 50, a mouth for free,,the ?do you want to just give money a way.an the job you on is already do a great job, i say put that money to a better used |
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Joe Bloggs
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Payment protection is a rip off in my opinon.... if your circumstances are secure and there is no risk of you losing your income to service the loan.
Perhaps its got some benefit to those who don't know about the certainty of their employment... but they are probably the least likely to be able to afford the extra insurance protection money each month lol. Catch 22.
You have to ask yourself... can I service this loan... and weigh up all the risks.
To me though... £50 x 12 months = £600.
£600 x 3 years = £1,800
Thats a hefty chunk on top of your borrowing (interest and capital repayments) that you would be paying back. Personally I'd prefer that money in my savings account... its a lot of money... how many hours would you need to work to make £1,800 clear after tax... quite a few..... why add it to the billions in profits some of the high street banks make annually.
However none of this is financial advice... if in doubt contact a qualified independant financial advisor/ . |
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Ollie
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Do not take it out as its a rip off.We took it out my husband was made redundant they still county courted us then started paying it.We have never took it out & that was over 15 years ago. |
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Christine
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Have you ever had difficulties in the past paying other loans? If the answer is no then don't take it, esp if only over 3 years.
Its just extra income for the lenders because they are forced to be competitive on the lending rates.
I changed credit cards because i got fed up paying payment protection ,even though I had it set up to pay by direct debit, its a rip off, and probably next to impossible to claim against anyway |
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trev_erwin
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I'd say yes without a doubt. Even though you mentioned your job is secure, how well will it cover you if you had a serious accident which left you unable to work? If this cover is adequate then you should be ok, if not I would seriously look at it.
The whole idea with PPI is that if something, besides losing your job that is, happens, you dont have to dip into your short-term savings to pay for the loan. The insurance will kick in. |
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pigletsam
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Total waste of money. I've had loans over the years and never had payment protection. |
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juliaearnshaw
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I think you already know the answer dont you. Save the £50 per month and if you dont need to claim you can pay the loan off faster therefore reducing your interest payment. |
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The Fat Controller
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it is a waste of money . if you are in a secure job with sick pay then don't bother . If you are a self employed struggling commission salesman it would be a different tale |
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Doddle
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Do you know what are the consequences are, should you be unable to meet your repayments? How likely is it that one of the claim events will happen, leading to your being unable to pay? How severely will the action taken against you in the event of default impact you?
If you assess the risk this way, it will help you decide whether it is worth having or not having the protection. |
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Ruth
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That sounds a real rip off. If you're at all worried, shop around for income protection insurance. This would pay out your lost income (or some of it) if you were unable to work, which would of course cover your loan repayments as well. |
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John
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I personally wouldnt cos I know my jobs safe and I could get another one if it wasnt but you never know if you got sick enough that you couldnt work! |
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Robert G
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no your wasting your money.
Banks over charge for this insurance to prop up profits. Its expensive and is a rip off.
There has been alot of negative coverage in the media about it.
But instead of paying the bank £50 a month how about paying it to me :D
lol |
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Awl
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In my experience I haven't taken ppp out. I am not in a secure job as keep leaving to have children and even though my income is never secure I always make the payments. It is entirely up to you. Do you have a critical life insurance policy? If yes, then this should cover the debt, but again, I am reluctant to advise you. One never knows what might happen. If your loan is huge and you feel that it is the right thing to do then take it. I'm umming and arhing here, but at the end of the day it has to be for your peace of mind. Do you have a partner? If he/she knows, then what do they think? If you don't take out the ppp and the worst happens would they support you until you were back on your feet? On another note, if you intend to put the £50 into savings and not use it, then this might be a nice fallback, but again, it all depends on the situation that you might/might not find yourself in.
Good luck with whatever you decide and take care. |
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