Paying for debt protection products: Safety net or money pit?
NEW YORK - MAY 20: In this photo illustration, major U.S. credit cards are seen on May 20, 2009 in New York City. In new landmark credit card legislation, the United States Senate has voted 90 to 5 to pass a bill that would restrict credit…
Photographer: Spencer Platt
Posted: 08/29/2012
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By: Michelle Lowry
TULSA - The swipe of a credit card can seem like a pain-free purchase until the bill comes.
In these uncertain financial times many people are buying debt protection products but experts say all too often you'll pay out far more than you'll ever see in the form of forgiven debt.
The Government Accountability Office, GAO, just released a study which found credit card holders received just 21 cents in tangible financial benefits for every dollar spent on debt protection product fees.
Credit card industry watchdog LowCards.com says you need to know before you buy what that promised protection actually covers.
Often it's only a minimum payment for a few months.
Which, even if you're carrying several thousand dollars on your credit card, could add up to less than a hundred bucks in benefits.
Click here to read more from LowCards.com about payment protection.
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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