Consumers should ensure they take independent financial advice before taking out guarantees such as payment protection insurance (PPI), it has been claimed.
Lucy Widenka, personal finance campaigner for consumer body Which?, explained PPI and other forms of insurance are often sold unnecessarily alongside other financial products such as credit cards and mortgages.
However, she warned, customers should not feel obliged to take out such products until they have been advised to do so by an independent expert and considered insurance which would protect all of their monetary affairs.
"If money is tight, you would be better off using money you would have used on credit card PPI and spending it on independent financial advice and more robust protection for your entire finances," she commented.
According to the Financial Services Authority, many small firms are failing to sell PPI fairly but not explaining it properly or making clear the exceptions to the guarantees.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.