With the economy fragile, unemployment high and job security uncertain, it’s understandable that people take out payment protection insurance when borrowing money.  If you take ill or lose your job, the idea of Payment protections is it will cover your payments on your essential bills such as your  mortgage, loans, and even credit cards.  On the face of things, for a few extra pound per week, it looks like a no brainer but the problems start if you ever need to claim as the policy’s are usually filled with exclusions.

If you decide that you still wish to take payment protection, take the time to compare policies.  Taking out a policy with the company that your loan is with is usually a bad idea that could end up costing thousands of pounds.  You should also make sure you read the terms and conditions of the policy to see what exclusions there are.

Many people in the UK have been miss-sold payment protection.

Here are some examples of where PPI has been miss-sold.

1. Payment protection is considered to be mis sold if the person was made believe that they had to take it out as part of the finance or you were lead to believe that your loan approval was dependant on you taking payment protection..

2. You were unemployed, retired or self employed when you took out the policy.  You should be asked about your employment status before you apply.  This is because PPI (the employment cover) is only appropriate for people who were working when they took out the policy,

3. You had a pre-existing medical condition.

If you feel you have been miss-sold payment protection, you can claim compensation from the insurance company.

Lenders have a responsibility to make sure the borrower fully understands the payment protection policy but as Payment protection policies are extremely profitable, some companies focus more on selling targets than on making sure the customer fully understands what is best for them.

If you have a policy that you feel is not right for you or has been miss-sold, you could possibly be in the position to claim compensation.  This first thing to do is write a letter to the company you go the payment protection from.  In this letter you should explain that you think you were miss-sold your policy.  If the outcome of this is not satisfactory, you should escalate your complaint to the Financial Ombudsman.

Popular searches for this article:

repayment cover,card protection plan complaints,claiming payment protection back,best ppi claim company,repayment cover on credit cards,claiming back payment protection,credit card repayment cover,what is repayment cover on a credit card

Taking out a loan is a very big decision and can be very costly.  The current base rate of interest in the UK is just 0.5%,however banks are charging the highest interest rates on personal loans since 2001.  Its important that you shop around.  If you do your research you can still find some very good deals. The right loan for you will depend on the strength of your credit rating, the amount of money you require and the length of time it’s going to take you to pay it back.

Lets look at a sneaky way of getting a loan if you are wanting to borrow under £2,000.  One of the best ways to borrow less than £2,000 is to locate a current account which comes with an interest-free overdraft. One of the best current accounts on the market is The Alliance & Leicester Premier Account.  Alliance and Leicester are currently offering a 0% overdraft of up to £2,000 for a year. They are also offering bonuses such as free annual European travel insurance and £100 cash-back.

Another deal comes from Santander which offers a similar 0% overdraft for the first year. Depending on your circumstances, it will also match your previous overdraft up to £5,000.  So If you need to borrow more than £2,000, this may be a better option. You’ll need to deposit at least £1k per month. And after the first year, your overdraft rate will jump to 12.9% APR.  An overdraft with your bank can work out beneficial but it’s definitely not a long-term solution.

Another interest-free option you might want to consider is a 0% credit card. This card will give you 0% interest on all spending for a period of time. This makes it an ideal solution for those who face urgent expenses, but don’t have access to the money.

One of the best deals on the market is the Tesco Credit Card.  The Tesco card currently offers you 12 months of interest-free spending. After the 12 months are over the APR climbs to 16.9%, so you need to ensure the balance is paid off before the 12 month period ends.
You should take into account that these cards are only available to people with a very good credit rating. If you want to view your UK credit report, you can sign up to a trial with Experian or Equifax.  Both usually offer free trails; just make sure you unsubscribe within 30 days or you will be charged a monthly rate.

If your borrowing needs exceed £5,000, a personal loan may be your best option.  Nationwide are offering The Existing Customer Personal Loan at a rate of 7.6% APR on loans of between £7,500 and £15,000.  This loan is only currently available those those that hold a Nationwide current account.

If you’re not a Nationwide account holder, you may want to consider Alliance & Leicester. They offer loans to new and existing customers, and a typical APR of 7.8% on loans between £7,500 and £15,000.

If you’ve been turned down for all the loans described in this article you may be tempted to look at alternative options such as payday loans. I would strongly advise anyone not to take one of these loans out. These “Payday loans” tend to get people further into a spiral of huge interest payments and rising levels of debt. Instead of making the situation better, they usually make debt problems far worse. If you are all out of options please contact your local Citizens Advice Bureau instead of turning to payday loans or loan-sharks.