Payment Protection Insurance (PPI) is one way consumers can ensure they have good debt management practices in place, one expert suggests.
It provides a financial safety net if people are made redundant, explains PPI lobbyist Sara-Ann Burgess.
She urges consumers to use PPI as part of their debt management plan in meeting everyday living costs, rather than putting more on to credit cards.
"When finances are stretched it’s easy to think of a credit card as a good debt management tool – but it’s not," Ms Burgess states.
She reminds Brits that minimum monthly payments on credit cards still have to be paid and if they keep spending on their plastic the interest is only going to increase.
Reliance on credit racks up more debt and is unsustainable, Ms Burgess adds, urging consumers to look for a debt management plan when times are tough.
Figures published by Credit Action last month show that total consumer credit lending at the end of February was £231 billion and each household pays around £3,000 in interest on debts each year.