PPI claims are a type of insurance offered alongside payment plans. PPI stands for payment protection plans and it is generally offered with credit to cover the event that the person who takes out the loan ever becomes unemployed or unable to work and therefore pays a portion or the debt’s entire loan amount. However, PPI refunds are being given for many people due to the fact that PPI doesn’t cover everyone – specifically those who are self-employed or retired. A large number of policies were underwritten with PPI for people who weren’t necessarily covered by it and therefore after several rulings, financial institutions were required to make PPI refunds.
Now people are left trying to figure out how to spend the money they’ve been refunded. What follows is a series of tips for managing and investing your PPI refund money.
- Save your PPI refund. – If you opt to receive a lump sum for your PPI claims, don’t spend it right away. It is best to hold onto that money and look at just what your options are in order to best use and manage it first.
- Spend your reclaimed PPI funds on the debts. – If you took out PPI claims on a debt, you may consider spending that money back into your debt in order to pay it off more quickly and thus owe less money. This option is both ironic and gratifying to yourself if you’re able to do it with multiple debts that you’ve accumulated. Plus, you may actually pay some debts off with your PPI refund and therefore be less burdened with payments.
- Put the reclaimed PPI funds into a savings account or another type of short term investment. – This option is often advised for individuals looking to keep funds for a rainy day. PPI claim money put into an interest bearing savings account will both accumulate more money and be able to be withdrawn for use anytime you need it. Short term investments will earn more money and become available after some time. For the best types of investments, you’ll need to contact a PPI claim advisory group.
- If you don’t have any necessary needs, use your PPI refund as you would like. – While it is generally recommended that you should invest PPI refund money elsewhere for a rainy day, if you’re already in top financial condition it would make little sense not to spend the funds.