Income protection better for unsecured loans - Loans - News - Moneyfacts


Income protection better for unsecured loans

Income protection better for unsecured loans

Category: Loans

Updated: 02/02/2009
First Published: 02/02/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Unsecured loans holders have been advised to consider income protection to provide security.

Consumer campaign group Which? suggested that this could be more effective than payment protection insurance (PPI), as these policies only cover the loans themselves.

According to personal finance campaigner Lucy Widenka, income protection "will protect not just a loan but will help protect mortgage payments", as well as "other debt that you might have like credit cards".

She added that consumers who find they are struggling due to a loss of income will continue to be able to purchase basics such as food if they take "a more holistic approach".

Ms Widenka's comments come following last week's findings by the Competition Commission that lenders face little competition when offering PPI.

It concluded that such policies should not be sold within seven days of unsecured loans being granted, in order to allow borrowers to make comparisons.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…

Competition returns to loans, but stalls in cards

Our recent figures reveal a mixed picture in terms of unsecured lending, as while competition appears to have returned to the loans market, it’s notably slowed in the credit card sector.

How to improve your credit score

Are you thinking about applying for credit? If so, you need to make sure your credit score is in order.