Bad credit credit cards: Consumers must have credit protection

Consumers should have some sort of protection to help them in situations where they are unable to make payments to their accounts, bad credit credit card customers have been told.

Phil Perry, co-founder and co-director of Ark Financial Planning, said that there is a distinction between payment protection insurance (PPI) and income protection contracts.

A major difference between the two is that PPI will provide cover for redundancy or disability for a limited period of time, whereas income protection can cover customers up until the age of 65 or 70.

Mr Perry said that self-employed people are mainly concerned with income protection, as opposed to PPI.

He added: "It's important to have some sort of protection in place in the event that somebody is unable to meet their mortgage or payment commitments."

Earlier this week, Robin Ellison, from Pinsent Masons, told bad credit credit card users that they should be prepared to work for longer to fund their retirement.