Insurance 'a good idea' for debt-laden Aussies

Australians who can envisage running into difficulty making payments on home loans, personal loans or credit cards may do well to take out insurance.

Such is the suggestion of debt expert Noel Whittaker, who writes in the Courier Mail that in certain circumstances, consumers could find that taking out the right insurance cover could provide protection should financial circumstances change.

However, he offered a caveat to those who were looking to take out payment cover on credit cards and loans.

“It is a complex topic because policies vary widely from company to company and are often couched in terms that make them difficult to understand,” he said.

As such, he stressed the need to inform oneself by talking with a financial adviser about whether the product would be right for individual circumstances.

Earlier this month, the Sydney Morning Herald advised that for those who are worried about the size of their debts, the low-interest home loan rates could help to free up spare cash to go towards repayment of credit cards and personal loans.ADNFCR-1761-ID-18992311-ADNFCR