Interest rate changes make payment protection cover advisable
- 27TH JULY 2007
Payment protection cover is held by a high percentage of individuals that are in debt, but that number is nowhere near enough if you consider just how many individuals have debt of some sort, whether that is on a credit card or a loan. As payment protection cover is optional, many consumers opt not to take it out but recent changes in the financial stability of the UK have highlighted the need.
More and more people are getting into debt or further into debt every day. Students emerge from universities thousands of pounds in debt with no sign of the highly paid job that they are told will come their way, and thus they struggle to pay it off. It is not just students struggling though.
Payment protection cover would protect debt repayments should an individual fall ill for a period of time or be made involuntarily redundant. This is especially important considering the recent rise in the Bank of England interest rates. In early July 2007, they were raised to 5.75%, which is the highest they have been since March 2001. Unfortunately, this will ensure that debt repayments also go up and thus individuals will struggle even more.
Payment protection cover is readily available from high street banks and also from the various standalone providers that are becoming more popular amongst consumers. Independent payment protection provider British Insurance is one of those standalone providers that offer excellent value for money. At around 80% less than payment protection cover offered by banks, it is no wonder that consumers are beginning to take note.
