Page 1 of Oh dear... pt 2 (It gets worse!)

I finally managed to sort out my Payment Protection claim for my £13,000 loan.... except, I`ve been unemployed now for 8 months and before I was paying £610 per month off of my loan so was expecting to have nearly £9,000 paid off by the bank... NO I get a letter from them this morning saying they`ve authorised the claim and will be paying off £1100!!!!! What is the point of Payment Protection?????

I now have to try and find £12,000 to pay off this loan (the debt collectors have it now!) and also £7000 for 1 credit card and £4000 for another one

Yeah, that payment protection is a joke. It normally only covers you for 12 months, and considering the amount extra you pay it is very rarely worth it (unless you know of an imenent lay off ;) ). I liken it to the extended warranties you buy on electrical goods.

I have just recently taken out a £10k loan. The monthly payments are £120, with payment protection it would be £165. That`s £45 extra a month overy ten years which equates to £5400. In two and a half years you would have saved enough money to cover the maximum protection that they will pay out (£1440) and it`s beter sitting in your bank earning interest than theirs!.

Yeah, i learned about payment protection the hard way. I took out a 5k loan a while ago and i would have paid it off by now if it wasnt for that. And to add insult to injury there are a lot of loopholes in it too >:(

make them an offer which YOU can afford every month.
If your seen to be making an effort in a repayment plan the creditors are normally pretty good.