Our mission is to connect people nationwide to debt relief specialists serving their area.

It's fast and convenient
It's your right to get relief
Your savings may surprise you
It's free, no commitment

Your Free Debt Relief Savings Estimate only
takes a few minutes and will not affect your credit.

Be Wary Of Credit Card Debt Protection Programs

Posted by Lisa Blackwell on April 8 2011 @ 9:05 am

Share this on:

Save money to use instead of a debt protection plan. Those who jump into credit card debt protection programs may do more harm than good, and the cost of these programs may not be worthwhile.

The Government Accountability Office recently announced the top nine credit card issuers made $2.4 billion from debt protection but gave consumers less than $520 million.

All debt protection plans are different, and consumers need to decide if their plans are worth keeping, according to Business Insider. If the policy covers problems that are unlikely for the consumer, but doesn't cover something that could occur, then it may not be worth paying for.

GAO reported average fees range from 1.35 to 1.85 percent, which equals 10.2 to 16.2 percent every year, according to BI. Also, if a consumer is considering such a plan, it may be best to act proactively. Consumers should make sure to put money aside every month. Over time, it could cover any minimum payment, and would not cost any extra fees from the credit card issuer.