Brits Confused by Benefits should Compare Prepaid Cards
Britons continue to be baffled by the welfare state system as 40 million admit they are unaware of what financial support is available new research shows.
If you are on benefits and are trying to budget a prepaid credit card could help you do so.
According to the Financial Safety Net report by Scottish Provident 80 percent of UK adults do not know what benefits are on offer should a family member be diagnosed with a serious illness, suffer a bereavement or disability.
When consumers were informed of the current benefits in place for the unemployed 14 percent thought it was an adequate sum, while only 24 percent thought the disability benefit was appropriate to support a reasonable standard of living.
The disability benefit for mobile adults is £71.40 per week, rising to £121.25 for those who are immobilised.
“The lack of knowledge suggests that many millions of Britons are likely to find themselves severely under-prepared, and on the back foot should they need provisions from the state,” said Susan Barclay, Scottish Provident’s marketing head.
“It is clear that individuals need to act themselves to build a financial safety net, ensuring security should the worst happen.”
Compare Prepaid Credit Cards
A prepaid credit card is an excellent way of gaining better control over your spending.
It works like a credit card and you can purchase items on it in stores and retrieve money from ATMs, but unlike a credit card you can only use as much money as is on the card.
The card is available for those with bad credit histories and as you preload credit onto the card you cannot unknowingly overspend. There is usually a small charge to purchase a prepaid credit card depending on the bank, but you usually get the money back once you have transferred funds onto it.