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RISING UNEMPLOYMENT THREATENS TO BRING THE HOUSE DOWN FOR BORROWERS WITHOUT PAYMENT PROTECTION INSURANCE, WARNS PAYMENTCARE.CO.UK

With unemployment at its highest level since 2002, workers who don’t protect their debts face a rocky future, advises online independent PPI broker Paymentcare.co.uk.

The latest figures from the Office for National Statistics show the number of people out of work at the end of March was almost 1.6m – this is up 44,000 over the previous quarter and 177,000 over the 12 month period.

“With the level of debt that so many people carry around these days – mortgages, credit cards, loans – the prospect of finding yourself out of work is a scary one,” said Paymentcare.co.uk managing director Shane Craig. “If you haven’t taken steps to ensure you can keep up your repayments, things can go wrong very quickly.”

Repossessions are also on the rise. Government figures show a huge rise of 29% on repossession action by mortgage lenders over the past year. At more than 33,000, this is the highest level since the dark days of the property crash of 1992.

Because interest rates are so affordable consumers are borrowing larger sums than ever before - but at the same time they are feeling less secure in their jobs and believe they would have great difficulty in finding alternative employment at the same level of pay should they be laid off. It’s an uncomfortable burden to bear every day.

“Unfortunately, losing your home or facing the bailiffs as a result of defaulting on mortgage repayments is becoming a growing risk for more and more people,” said Craig. “Whilst they may consider some form of payment protection insurance, the very expensive policies offered by High Street lenders are often out of their reach and so borrowers do nothing and just hope that the worst won’t happen.”

But it doesn’t have to be this way. With premiums at a fraction of the cost of High Street lenders, Paymentcare.co.uk’s comprehensive range of low-cost policies provide genuine protection for borrowers with debts of all types and sizes.

And because Paymentcare.co.uk policies are offered on a genuine “back to day one” basis, claims are paid following a 30 day waiting period - just like a monthly salary, eliminating that gaping hole of zero income for a month or two imposed by many lenders’ policies.

Paymentcare.co.uk policies are transparent and genuine value for money,” said Craig. “There is simply no need for borrowers to put themselves and their families at risk of financial disaster.”