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BORROWERS OPTING FOR LOAN REPAYMENT HOLIDAYS COULD FIND SAVINGS BACKFIRE, WARNS BROKER PAYMENTCARE.CO.UK

BORROWERS OPTING FOR LOAN REPAYMENT HOLIDAYS COULD FIND SAVINGS BACKFIRE, WARNS BROKER PAYMENTCARE.CO.UK

BORROWERS seduced by loan providers’ inducements of a three month repayment holiday on loans, who also shop around for better value stand-alone payment protection insurance, risk finding themselves in limbo should their personal circumstances change before they make their first repayment.

“The attraction of not having to pay anything back for three months is obvious, but it can be a false economy if you don’t have payment protection insurance in place from the outset,” said Paymentcare.co.uk managing director Shane Craig.

“Many borrowers think they don’t need PPI in place until they actually start making repayments – overlooking the fact that should they lose their job during the repayment holiday period then they would no longer be eligible to apply, or if they were to suffer from a specific illness before arranging cover then it would be excluded as a pre-existing condition.”

Repayment holidays appeal to consumers who may already be struggling under a burden of mounting debts – it’s a lifeline to grab at but it won’t bring any respite if there’s no safety net in place.

“The whole point of PPI is to protect your repayments against the unexpected,” added Craig. “Misfortune can strike at any time, so for those who would like the protection of PPI, delaying arranging stand alone cover for the sake of two or three months could prove foolhardy when taking on a large debt.”

With Paymentcare.co.uk offering a comprehensive range of policies to suit a range of circumstances at exceptionally low rates, borrowers can secure their repayments for just a few pounds a month.

For a typical monthly loan repayment of £150, Paymentcare.co.uk can provide protection against Accident, Sickness and Unemployment for less than £6 a month. “That’s the price of a couple of drinks at the pub – a negligible amount in anyone’s budget,” said Craig. “It’s a very small price to pay for peace of mind and security.”