PPI (Payment Protection Insurance)....

[Seeker]

Do any of you use these services? And if so, why?

We have several credit card companies that keep wanting to sell us this and telephoning us. We pay in full each and every month, but I'm wondering why anyone would choose to add to their monthly bills when the services (hopefully) will not be used. If both DH and I lose our jobs simultaneously we'd still be able to pay that months CC bill in full.

Maybe it's more resonable for car loans and bigger personal loans, but I still cannot understand paying an extra 15 or so percentage more to the life of these loans either.

Am I missing some advantage to doing this?

[SnoopyCool]

It doesn't make sense to me, but I'm still new to all of this so I have a lot to learn.

[simpleyme]

our friend had some sort of insurance on his sears card and when he was hurt in car wreck and was unemployed it payed minimum on his revolving balance on his sears card

he was quite happy ,I think it was a scam, they only pay the minimum payment, that was like 20 bucks or so and the credit cards get alerted by you that you are out of work, uhh that's when you might want to use your cards, and he could not use the card during the period he was using the insurance

I do not think it wise to alert CC that you are out of work unless you are trying to negotiate payment deals

[musicalbabe85]

I had it on the second credit card I got through Capital One. I was only 19 when I got it and thought it would be good to go ahead and add since I was horrible with money (should have been a clue NOT to get another cc, but hey). When I was on maternity leave at age 20, going through postpartum depression and upset all the time because we didn't have the money to spend whenever I wanted, I maxed out both of my credit cards and overdrew my account. The good thing was, I didn't pay for the service unless I used it. So the one month I used it, I think it cost me like 89 cents per dollar it paid or something like that. So not too bad. I ended up closing both of those cards back in September. Definitely didn't get it on my current cards though.

[Like2Plan]

Originally Posted by Seeker

Do any of you use these services? And if so, why?

We have several credit card companies that keep wanting to sell us this and telephoning us. We pay in full each and every month, but I'm wondering why anyone would choose to add to their monthly bills when the services (hopefully) will not be used. If both DH and I lose our jobs simultaneously we'd still be able to pay that months CC bill in full.

Maybe it's more reasonable for car loans and bigger personal loans, but I still cannot understand paying an extra 15 or so percentage more to the life of these loans either.

Am I missing some advantage to doing this?

It is probably a good idea to have some sort of protection and that is where disability ins comes in. The problem with the CC companies protection is the fee is pretty steep relative to the amount of protection you get.

[disneysteve]

It isn't exactly a scam, as it does exactly what it promises to do. The problem is it is a very expensive way to get the protection. You need life insurance. You need disability insurance. If you have both of those, this would serve no purpose. Just think - the reason your card company keeps trying to get you to buy it is because they make a bundle on those plans.

[Seeker]

Okay, thanks all....

Just wondering whether or not I was missing something with this.

We both have disability insurance through work and life insurance through work. He also has a life insurance plan outside of work. So we should be fine.

Apparently CC companies cannot accept the fact that we get to use their money for free (for that short time until a bill comes).
They want to fee us for extras that aren't warranted -- guess every company is looking to make a buck.