Paymentcare warns borrowers about payment holidays is warning borrowers that taking a three month repayment holiday on loans could leave them in limbo should their personal circumstances change before they make their first repayment.

Shane Craig, managing director of, says: The attraction of not having to pay anything back for three months is obvious, but it can be a false economy if you dont have payment protection insurance in place from the outset.

Many borrowers think they dont need PPI in place until they actually start making repayments overlooking the fact that should they lose their job during the repayment holiday period then they would no longer be eligible to apply.

Alternatively, if they were to suffer from a specific illness before arranging cover – then it would be excluded as a pre-existing condition.”

“Repayment holidays appeal to consumers who may already be struggling under a burden of mounting debts its a lifeline to grab at but it wont bring any respite if theres no safety net in place.

The whole point of PPI is to protect your repayments against the unexpected. Misfortune can strike at any time, so for those who would like the protection of PPI, delaying arranging stand alone cover for the sake of two or three months could prove foolhardy when taking on a large debt. offers policies to suit a range of circumstances.

For a typical monthly loan repayment of 150, can provide protection against accident, sickness and unemployment for less than six pound a month.

Craig adds: Thats the price of a couple of drinks at the pub a negligible amount in anyones budget. Its a very small price to pay for peace of mind and security.