Prevent Debt with a Prepaid Debit Card
The number of Brits struggling with debt is expected to increase as helplines record a rise in enquires from people unable to manage their finances.
According to Debt Free Direct, many of these enquiries come from people who feel redundancy could be the final tipping point for their financial situation.
Official government figures show nearly 34,000 people were made insolvent in England and Wales in 2010’s third quarter.
A further 13,907 were made bankrupt during this same period and these figures are expected to rise sharply into 2011 in the wake of public sector finance cuts.
“People feel relieved knowing where they stand and taking back control of their finances,” said Nicola Teader, Debt Free Direct’s insolvency practitioner and director.
“Recognising that doing nothing is the worst option is, however, the key.”
Budget with a Prepaid Debit Card
If you are struggling with debt, or are concerned it may be a problem in the future, a prepaid debit card could help you save some money to fall back on should the worst happen.
A prepaid debit card can aid budgeting as it prevents the user spending more than they can afford.
Most cards can be purchased online or through a specific retailer for a small price, and this is often refunded once the first sum of money is loaded onto the card.
To take advantage of a prepaid debit card the user should formulate a budget for specific areas of their monthly outgoings.
Once this budget is loaded onto the card the user can use the card to make these purchases knowing that they will not overspend or get into debt, as the card does not allow the user to spend more than they loaded onto the card.
If the funds run out, the card user has to reassess their budget to then put more money onto the card for use.