Could PPI be costing more than interest?

The Competition Commission has recently announced that your PPI on your credit card could actually be costing you more than your monthly interest in some cases.
An investigation into Payment Protection Insurance by the Competition Commission has shown that potentially thousands of people may be wasting more of their money on the insurance than they are on the interest. This is certainly going to shock many people as most of the time we are simply not aware of what we are paying each month.

Many people take out PPI because they feel that it is better to be safe rather than sorry. They do not really take much notice of how much it costs each month as they feel that they need it and most of the time when they first sign up, it actually does not sound like a lot of money. However when you actually realise that you are paying more for your PPI than you are for your interest, that is when you should really look into whether you actually need the insurance or not.

Most of the time PPI is just a complete waste of money. In a lot of cases it doesn’t even cover everything that you assume it would cover. So you could pay a fortune every single month only to find that when you actually need it, you are not covered for what you need. This has happened to many people and it is because nobody bothers to read the terms and conditions of the insurance before they sign the contract.

So if you are applying for a new credit card then it would be a good idea to see exactly what the PPI covers and whether it is going to cost more than your interest. Or if you suspect that your PPI is currently too high then why not look into stopping it? You need to make an assessment of whether you really do need the insurance or not and if not, why waste your money?