Money Saving Tips: Pre Pay Cards
The Consumer Credit Counselling Service (CCCS) has warned that the Government’s proposed welfare shake-up targeting benefit scroungers will mean that those needing financial help most could lose out.
On average, families lose out on £80 per week in unclaimed benefits, amounting to a huge £4,000 per year in unclaimed money.
The total figure for unclaimed benefit is an estimated £16 billion a year, and CCCS states the government is not going far enough to help those who are entitled to benefits but miss out.
If you depend on benefits to substitute a depleted or non-existent income and the new reforms may require you to cut back, a pre pay card could aid your financial budgeting.
“The coalition’s plans are well intentioned but there are probably more deserving people under-claiming than there are so-called ‘benefit scroungers’,” said Malcolm Hurlston, CCCS chairman.
“Economic recovery requires genuine potential claimants to be better identified and helped.”
The CCCS recorded housing benefits, child tax credit, and pension credit as the top three most important benefits for people in debt.
The UK’s most costly benefits, according to the BBC include tax credit, housing benefit, child benefit, disability living allowance, and income support.
A Pre Pay Card for Budgeting
If you have a bad credit history, have no income, or have even been, or still are, in debt, you are still eligible for a pre pay card.
A card user simply loads the card with funds to spend as they would a debit or credit card but it does not allow you to go over this set amount, so it prevents people from spending money they do not have.
It can be purchased for a small price of up to £10 on the high street and once initial funds are loaded on to the card, depending on the provider, the price of the card may be refunded.