Prepaid credit can help avoid spiralling debt
Prepaid credit cards can help customers avoid spiralling debt.
With current levels of credit card debt standing at £54 billion, one debt charity is pressing the benefits of prepaid cards as a means of managing debt.
David Roger, managing director of the Debt Advice Foundation, has said prepaid credit cards have big advantages for those on lower incomes or who already have problems with debt.
As well as having all the advantages of conventional credit cards – such as being useable for buying over the phone or internet and relieving users of the need to carry large amounts of cash – they help keep spending and debt under control by preventing you from spending more than has been preloaded onto them.
According to Unbiased.co.uk, which assessed the total level of credit card debt, everyone in the UK will collectively work the first 50 days of the year just to pay off the nation's credit card interest bill.