American consumers are getting fed up with piling up credit card debt and are turning to using prepaid cards to maintain the convenience of “plastic†without adding to already overwhelming personal debt problems.
Prepaid cards are available at many retailers nationwide. They do carry varying fees so caution is advised when choosing one, however they can help avoid the credit card trap and make it easier to maintain a household budget. Prepaid cards rely on money the consumer already has rather than credit. This makes them especially attractive to those who are fighting to get out of debt or stay out of debt.
Typically, the prepaid card is purchased at a retailer and is then “loaded†with any amount of cash that the consumer wishes to deposit. They can then be used to pay purchases or bills anywhere that major credit cards are accepted. Activation fees associated with prepaid cards range from as low as $3.00 to as much as $100.00 depending on the issuer. Some card issuers also charge a monthly fee. Prepaid cards do not require a credit check. They are often used by those who want credit card convenience but who do not have access to a traditional bank account.
It is expected that as new Federal laws requiring cosigners for those under 21 years of age take effect in the next few months, that many young college students who may have been given a true credit card will be turning to prepaid card as an easy way to handle their finances.
With the recent statistics posted in the news reporting that American consumers are taking a new look at credit card debt and striving to be debt free, prepaid card usage may very well be increasing over the next few years
