Sometimes, one will find one self relying a lot on credit cards and relishing in the “freedom” of “buy now, deal with it later”? If this is your case, then it might be time for you to start considering acquiring a prepaid card.
Although you may appreciate the handiness of possessing a credit card, your spending habits can rapidly spiral out of control provided you are not armed with self-discipline. So, if you are experiencing the burden of ballooning debt, this moment proves to be a great time to escape by employing a prepaid card.
No Interest Rate with Prepaid Cards
In the UK, the average balance carried on a credit card is £1,000.With interest paid at an average rate of 18%,this translates to the average individual paying about £180 a year on interest alone. The prepaid card offers itself as an alternative payment solution to traditional credit cards. With a prepaid card at your disposal, you will simply be using the funds you have pre-loaded on to the card. When you have drained the amount, additional transactions will simply be denied. Thus, it will be impossible to accumulate debt and never will you have any outstanding amount to pay interest on. Before applying for one, remember to do your research to learn about how the best prepaid card can help you evade high interest rate.
Limiting Impulse Purchases
Shopping online, late night ATM withdrawals and a night out on the town can all be dangerous financial pitfalls when you are utilizing a regular credit card. People lean toward overspending and end up blowing through their established financial plan just because of the availability of credit that they can draw on from their credit card. This unhealthy practice of “buy now, pay later” can be limited through the use of Visa prepaid cards. With prepaid cards, you are only able to expend what you previously earmarked and placed into your prepaid account, so spending money that you don’t have is never an option.
Say Bye to Late Payment & ATM Withdrawals
Late payment charges are extremely bother some as they are reflected in the overall monthly interest chargeable. Additionally, credit card customers will generally have to address immediate interest rates when completing currency withdrawals at ATMs. By employing prepaid cards, you can circumvent these charges and punitive interest fees as immediate interest rate from ATM withdrawals and late payments don’t exist with prepaid cards.
Control Spending & Avoid Debt
It remains a good idea to remember to set a budget and follow it with a heightened level of self-discipline. This is true even while using a prepaid card.As a prepaid card holder, there should never be a fear of over-spending as you are able to only transact with the amount of money pre-loaded on the card. Also, Prepaid cards will assist you with evading high interest rates as well as late payment penalties as all your disbursements are prepaid and accounted for. In addition, a prepaid card will have no association with your private details, this effectively means your credit score will never be accessed or changed while going through the application for a prepaid card.