Wednesday 25th of March 2009
The use of prepaid cards can help consumers with debt management efforts, it has been suggested.
Peter Harrison, card and payments expert at moneysupermarket.com, explained that those hoping to avoid spending more than they can afford should consider the option.
By choosing this over a credit card, he noted, the amount of debt that is accrued can be limited, as "one of the key things about prepaid is that you only load what you want to spend".
Mr Harrison added that the risk of debt management problems associated with fraud is reduced, as only the balance available could be obtained, rather than the allowances of £10,000 to £15,000 that exist on some credit cards.
The Money Advice Trust recently observed that consumers may be forced to address their debt management problems sooner as a result of new government initiatives, which will prevent credit card companies from raising limits without a request being made by the customer.
