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Credit card "protection plans" are not worth the cost, says credit counselor
Sandy Shore. These plans from credit vard issuer, which promise to pay all or a portion of your credit card bill if you become disabled, lose your job or die, are especially popular during this time of high unemployment and loopholes. The plan may not kick in if you lose your job for performance reasons...if you are disabled but can do some other disability coverage. The monthly fee rangeges from 35 cents to 99 cents per $100 of debt. Better: Build up an emergency fund or purchase extra life insurance.
Sandy Shore is senior counselor at Novadebt, a nonprofit credit-counseling agency in Freehold, New Jersey. www.novadebt.org