Payment protection insurance? Cancel?

[need2budget]

hi there
while reviewing an existing loan that i have, i have payment protection insurance on..... the loan is over 48 months, and payment protection was taken out, 1048 euros, added to the loan,,, from what i see they just added this to the loan balance and calculated interest on the total amount? is this the way its done?

i was thinking of canceling the payment protection insurance to further reduce my debt.,... the loan was taken out fixed for 4 years..


my next question being, will i save much by canceling the payment protection insurance? i want to get rid of this loan asap and if i will save a good bit from canceling the payment protection insurance i will....

thanks for the suggestions in advance...

 

[ClubMan]

You need to find out how much the payment protection premiums are per month. Nobody can guess this from the info posted.

 

[CCOVICH]

It appears that the premiums were front loaded onto the loan.

....payment protection was taken out, 1048 euros, added to the loan,,, from what i see they just added this to the loan balance and calculated interest on the total amount? is this the way its done?

How much will you save? That depends. When did the loan start? If it was 2 years ago, I would imagine that you would be due 50% of the 1,048 euro or thereabouts.

Are there any penalties for early redemption of the loan? I ask, because I see that it is a fixed rate loan. But even if you don't repay the loan now, there should be nothing to stop you cancelling the PPI separately.

 

[need2budget]

ok i will get approx 750 euro back if i cancel the payment protection...

i dont have payment protection on the credit card, so ill use the refund of payment protection from the personal loan to put a hole in the credit card balance...


cool..