April 29,2009
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Credit Card Protection Protection, Pt.3
Ask the tough questions.Mr. Hardekopf explains what he considers, much better alternatives for credit card protection. Some of them are things like life insurance, which commonly (or can) cover credit card payments after death. Secondly, during catastrophes lenders are almost always happy to work with victims to help them remain solvent. On thing that makes them happy is when you pay ahead (more than the minimum). The moneys that would be spent on protection should be directed just for this purpose. Instead of paying greater finance charges, the consumer would be paying less. This alternative provides a win-win situation where both the credit card issuer and the consumer win.
One particularly attractive benefit that wins over the consumer is the thought of having 'interest frozen' so it does not accumulate. If it were always true and without a hitch, it might be worth-while considering. Since it is not, one better alternative might be to transfer the entire balance to one of the credit card choices on the home page of this site. Just this week, I helped a friend in dyer straights to open a credit card account with Discover that offered 12 months of no interest. That saved her a bundle and allowed her to apply total payments toward the principle for a year. Pay that balance down!
If you do decide to go with a credit card protection plan, make sure it will benefit you. Ask those tough questions so you can quote the seller. It's all too easy to just say "Yes" in order to close the call or not admit you don't understand. They make it sound like it's compulsory or expected of you. IT IS NOT! Please, don't fall into that. Evaluate the plan for meaningful benefits. Always keep in mind that, although the presentation is cleverly designed to sound like traditional insurance, it is not. Know this, that most states regulate the insurance industry and come down on them hard for deception. Credit card protection policies are not subject to these consumer regulations and, mostly, are free to deceive you at will.