Pre-paid cards' could prevent debt'
Consumers concerned about mounting credit and store card debt may want to consider prepaid credit cards as an alternative, one sector commentator has claimed.
David Rodger, managing director of the national charity the Debt Advice Foundation, said one of the main advantages of pre-paid credit cards is that they avoid the accumulation of credit card debt by preventing the owner from spending more than they have loaded on to the card.
"Basically the customer gets all of the advantages of using a credit card, for example being able to pay for goods over the telephone or not needing to carry cash but without the risk or temptation of spending more money than they have," he added.
However, Mr Rodger explained this was provided they only loaded the cards with the money they has available, rather than finances they had borrowed from elsewhere.
People looking for flats to rent in Islington or another part of London while they save to buy a home in the area may find the cards make it easier to put money to one side without falling into debt.
According to the recent Better Banking Campaign, between five million and seven million people cannot access mainstream credit such as overdrafts, loans [and] credit cards.
Written by Andy Britten
Published 26th February, 2010
© 2010 Estates IT Limited
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Britons looking for property to rent in London while they save to by a home may be interested to hear comments suggesting pre-paid cards could help to alleviate debt.