Before You Buy PPI

PPI or Payment Protection Insurance can be a good thing to have. It can protect you against debt in the event you are unable to work. However, it can also cause more trouble than you would imagine.

Selling PPI is big business for lenders and it is expensive for consumers. Many lenders today will offer PPI coverage to consumers who would never qualify for the benefits upon submitting PPI claims. If you are considering PPI, it is vital that you make sure you are qualified. In addition, check to make sure that the policy covers the debt in its entirety rather than simply minimum monthly payments for a specified period of time.

Misrepresentation of PPI by the lender and / or misunderstanding of the details of a PPI policy can have dramatic consequences for a consumer. The excessive cost itself can be a detriment, as it adds to the amount owed. Many times, it is simply bad value. And mis-selling of the policies can lead to even greater financial exposure. Unfortunately, it is often those who are most vulnerable who are victims of mis-selling. They may be sold PPI policies under false pretenses, leaving themselves exposed to even more debt. At a time when personal debt levels continue to escalate, this is troubling.