The firm warns borrowers risk being buried by their extravagance if they have no protection.
“PPI is an important safety mechanism, like locking your front door,” said Paymentcare.co.uk managing director Shane Craig. “Hopefully no-one will try to break in but leaving your house unsecured could result in your valuables being cleared out. Protecting your finances is the same – don’t bother and you could find yourself with money worries should illness or unemployment strike.”
Through mortgages, credit cards and other loans, consumers have borrowed so much that the economy of the UK is looking decidedly sickly.
With the number of people out of work up by 21,000 to 1.69 million in April, the cavalier attitude toward borrowing being taken by millions of families is further undermining the financial health of the UK. And with personal insolvencies soaring to 30,000 so far this year, the warning bells cannot be ignored.
“What might seem like a manageable debt when there’s a regular monthly salary coming in can turn into an insupportable burden that cannot be sustained when unemployment or illness strikes,” said Craig.
“And for homeowners with borrowings already up to the max, the latest rate rise could find some families unable to keep all their debt-laden plates spinning.”
Unlike lenders’ own PPI policies, stand-alone protection from Paymentcare.co.uk is not prohibitively expensive.
“When comparing the repayments of a loan with and without lenders’ own PPI, it’s understandable why borrowers might decide against it,” said Craig. “With PPI included, the total amount repayable can leap by thousands of pounds. It’s easy to see why they may prefer to risk being unprotected.
“Paymentcare.co.uk policies cost a fraction of those of High Street lenders, meaning that consumers can borrow what they need – and want – without having to choose between being safe or sorry.”
