No matter what you buy, it's likely that some choices will be, if not disasters, certainly poor. For example, that pair of jeans that doesn't fit is likely to end up in the back of the closet and never worn.
Although poor choices are a part of life, in some cases, they are more important than they are in others. For example, mortgage payment protection insurance is much more important than a simple ill-fitting pair of jeans. It can leave you covered in times of distress if you have the right cover, or you can be high and dry with no place to go if you don't. Therefore, it's important for you to know what you're looking for when you make your choice. Although you can cancel, it's likely to come with a penalty if you cancel outside of the stated cancellation period.
The marketplace has many payment protection providers to choose from. Each can vary in terms of what they offer and how much they charge, but it should be relatively easy to decide whom you want to insure with. To start, provide some basic information about your needs, and the rest should be fairly simple.
What Are You Looking for?
There are three main types of mortgage payment protection available. Most insurers will be able to provide you with all three of them, but some may be more knowledgeable in one type that in others. Therefore, it's best if you know which type of coverage you're looking for before you shop for a provider. The types of insurance are:
* Unemployment and incapacity. With this type of insurance, you're covered if you lose your job, or if an illness or accident leaves you unable to work for an extended period of time. This is the most comprehensive and is the one that will protect you the most, so it's likely that you'll want this one.
* Unemployment only: This type of insurance will cover you if you lose your job, but it will not cover you for any other kind of job loss; for example, if you become injured on the job or become ill and cannot work because of either of these reasons, this type of insurance will not cover you.
* Incapacity only: Just like it sounds, this type of insurance will cover you if you become ill or injured and cannot work, but it will not cover you if you lose your job to some type of unemployment scenario. This type of insurance does work for those who are self-employed, since they are typically only classified as unemployed if they stop trading altogether and not if they're simply having a lull in business.
The Best Payment Protection Providers
There are literally thousands of payment protection providers available, whether on the high street or online. However, it might surprise you to know that you are likely to find your best choice online. In addition, you likely save money on premiums by shopping online for your provider as well.
One of the best providers is British Insurance. They have been awarded the 2007 What Mortgage Best Buy and are also recommended by the website MoneySavingExpert. If you wish, use Google to find other providers and do your own homework. In this way, you'll know just what types of payment protection insurance are out there through the different providers.
Preventing Debt
The best way to prevent going into debt is by not going into debt in the first place. Like it is always said, prevention is the best cure. It works both in the health sector as well as the financial one. In order to keep from getting sick, it is best to live your life so you do not get sick in the first place. In your financial world, if you live your life responsibly and within your means, you can enjoy the peace of mind that goes along with it.
A budget is your key to success with preventing debt. A budget will show you what you can actually afford to spend. Take an inventory of all your income then subtract your debts. This will include all debt servicing payments, child support, or other things that take money away each month. You may find that you do not have as much as you thought after subtracting what you pay out. On the contrary and hopefully, you may have more than you thought. A budget will be your strongest aid in helping determine your financial well being.
Some expenses will be discretionary and other non-discretionary. Discretionary items are items that you have say over how much you spend. Discretionary items are going out to eat, clothing and entertainment expenses. Anything that you can control the expense is a discretionary expense. On the other hand, a non-discretionary are expenses that are for the most part fixed. Expenses such as mortgages and car payments are examples of non-discretionary items. It would be wise to concentrate lowering your discretionary expenses as you start out on your path to being debt free or controlling your debt.
Once you have some preliminary numbers down, you will need to work on what luxuries you can do without. Do you get a manicure every month? Or perhaps weekly? Is this something you really need? Do you smoke or drink? You could possibly save hundreds, not to mention your health, just by cutting these two things out. There is nothing good to say about smoking, but with moderation, drinking is not necessarily a negative behavior. But chances are, you could save some easy cash if you do it in moderation or not at all. Do you eat out at work? Could you pack your lunch instead? Maybe take some leftovers from the dinner you made the night before? These simple things will help tremendously on keeping within your budget and not living beyond your means.
The money you will be saving can go towards paying off your smaller or higher interest rate debts first. You would be surprised how this would add up. If you prefer, you can put it in savings account and pay a lump sum to the credit card. It makes absolutely no sense to keep it in a savings account and not pay off the debt. Chances are you are getting 3% or less on your savings and paying double digit interest on your credit cards. If you pay off your credit cards with the savings, it is the equivalent
of getting an automatic hike in your savings interest, which means more money in your pocket eventually.
Going into debt is one of the easiest things a person can do. We are constantly tempted with buying things we do not need. It is much more difficult but rewarding to say no to the pressures and stay debt free. Stay away from the high interest credit cards that are making banks rich. Make yourself rich instead.
A budget is your key to success with preventing debt. A budget will show you what you can actually afford to spend. Take an inventory of all your income then subtract your debts. This will include all debt servicing payments, child support, or other things that take money away each month. You may find that you do not have as much as you thought after subtracting what you pay out. On the contrary and hopefully, you may have more than you thought. A budget will be your strongest aid in helping determine your financial well being.
Some expenses will be discretionary and other non-discretionary. Discretionary items are items that you have say over how much you spend. Discretionary items are going out to eat, clothing and entertainment expenses. Anything that you can control the expense is a discretionary expense. On the other hand, a non-discretionary are expenses that are for the most part fixed. Expenses such as mortgages and car payments are examples of non-discretionary items. It would be wise to concentrate lowering your discretionary expenses as you start out on your path to being debt free or controlling your debt.
Once you have some preliminary numbers down, you will need to work on what luxuries you can do without. Do you get a manicure every month? Or perhaps weekly? Is this something you really need? Do you smoke or drink? You could possibly save hundreds, not to mention your health, just by cutting these two things out. There is nothing good to say about smoking, but with moderation, drinking is not necessarily a negative behavior. But chances are, you could save some easy cash if you do it in moderation or not at all. Do you eat out at work? Could you pack your lunch instead? Maybe take some leftovers from the dinner you made the night before? These simple things will help tremendously on keeping within your budget and not living beyond your means.
The money you will be saving can go towards paying off your smaller or higher interest rate debts first. You would be surprised how this would add up. If you prefer, you can put it in savings account and pay a lump sum to the credit card. It makes absolutely no sense to keep it in a savings account and not pay off the debt. Chances are you are getting 3% or less on your savings and paying double digit interest on your credit cards. If you pay off your credit cards with the savings, it is the equivalent
of getting an automatic hike in your savings interest, which means more money in your pocket eventually.
Going into debt is one of the easiest things a person can do. We are constantly tempted with buying things we do not need. It is much more difficult but rewarding to say no to the pressures and stay debt free. Stay away from the high interest credit cards that are making banks rich. Make yourself rich instead.
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