Payment Protection Internet Guide

Losing your job can be a devastating event.  It is emotionally trying to be let go of where you have been working.  It is also financially trying as you scramble to pay your bills.  We have the main bills that we worry about like rent, food, and electricity.  However, there are other bills, which are not linked to our survival, that demand our attention, chief among those are credit card bills and loans.  In the last fifteen years credit card and loan companies have offered Payment Protection Insurance (or PPI) to their consumers.  While this was intended to serve as a means of helping those that they do business, however it has more often than not become a double-edge sword that has caused many more grief than assistance. 

So what is Payment Protection Insurance?  On the surface, it is a useful tool to have.  Payment Protection is an insurance policy that will continue to make payments to your loan or credit card bill should you 

·         become unemployed

·         die

·         become ill

·         have an accident that prevents you from working 

This form of insurance covers the minimum payments for a certain amount of time until the borrower can continue to earn money and pay his or her own debt.  It is a useful tool to have that will help you remain in good standing with creditors and keep your credit rating on a positive note.  While Payment Protection can be beneficial, it is not for everyone.  In certain cases, PPI can do more harm than good. 

So how can such a beneficial tool become such a burden?  The problem is not with the service itself but with those who peddle it.  Payment Protection is an ad-on those credit card representatives and loan officers try to up sell to customers as an additional product to make money.  One of the things about Payment Protection Insurance is that since it is an actual insurance policy, it needs to be underwritten by a licensed professional.  More often than not this doesn't happen, which can invalidate the policy.  Another issue with Payment Protection is that like with all other insurance policies, one has to be eligible to receive the claim.  If you are fired and receive a severance package or payment in lieu of notice, then these factors can cause your claim to be denied.  Unlike other forms of insurance, it is difficult to determine what will happen if you are unemployed.  This is one of the factors that need to be considered before signing up for Payment Protection Insurance.  The last thing to consider is that PPI is an add-on to your bill.  Instead of just paying off your balance, you are paying the extra premium for your policy.  This will raise your monthly payments from something that seemed feasible at first, to something that is beyond your means.

So what can be done?  There are companies that will help you claim back those charges that could have been avoided had your claim been approved.  Performing an internet search is your first step to contacting one of these companies.  Protecting your credit is a basic survival need today.  Contact a trained professional today and get your good name back.