Starting the New Year in Debt? How a Prepaid Card Can Help
New figures suggest millions of Britons will start the New Year in debt after the strain of Christmas on their already stretched finances.
A prepaid card can help those who are finding it hard to budget their Christmas funds by ensuring they do not spend more than they have.
To prevent going into your overdraft or racking up expensive credit card bills try loading your money onto a pre pay credit card instead.
The card does not allow the user to spend over what they have loaded onto the card so when the funds run out they can closely monitor where their money has gone and how much more they will need.
A pre pay card allows the card user to spend money on it as they would a debit or credit card as they are accepted in most retail outlets and ATMs to obtain cash.
Types of Debt after Christmas
People are most likely to end up in credit card debt followed closely by overdrafts and personal loans Moneysupermarket.com showed as cited from the Telegraph.
The research showed a huge 3.8 million expect to be in debt due to Christmas this year a worrying figure considering there are already 19.6 million already in debt.
“We know times are incredibly tough for consumers and it’s no surprise to see such a high number of people will be pushed into debt this Christmas,” said Tim Moss, Moneysupermarket’s loans and debt head.
A huge 69 percent will be using their credit card to cover the funds they do not have, while 23 percent will rely on their overdraft and eight percent will take out a loan.
Prepaid Cards Prevent Debt
No one will want to start the New Year in debt so to prevent this from happening take control of your finances now.