Play it Smart With a Prepaid Debit Card PDF Print E-mail
Written by David T. Andrews   
Friday, 06 March 2009 15:05
It's hard to feel optimistic in today's financial climate. It seems like everywhere the news is bad. On a personal level, we're all feeling our own version of the financial squeeze too. It just seems like things are spinning out of control.
by DavidT.Andrews


It's hard to feel optimistic in today's financial climate. It seems like everywhere the news is bad. On a personal level, we're all feeling our own version of the financial squeeze too. It just seems like things are spinning out of control.

That's where prepaid debit cards come in. These cards are really financial tools that we can use to take back control over our finances. Let me explain.

You see, credit cards are really short-term loan instruments, but prepaid debit cards are an alternative spending tool. To acquire a credit card, you need a bank account and established credit while prepaid debit cards (aka stored-value cards) require neither. You simply purchase a prepaid card, load it up with your cash, and then use it. Pretty simple right?

And these cards are every bit as useful as regular Visa or MasterCard credit cards. They're accepted in all of the same places and they have most of the same features and benefits as normal credit cards. But they don't have the same disadvantages.

For instance, credit cards let you spend more than you actually have while prepaid debit cards only allow you to spend what you've already loaded. And because they're pre-loaded, these cards never have an interest rate or a minimum payment. It's pretty difficult to get into credit trouble with a prepaid card.

You will have to be more prudent with a prepai card though. You won't be able to buy things just because you can; you'll have to give all your purchases more forethought. But that kind of planning and discipline will save you money in the long run.

That's why prepaid card usage is on the upswing. People are turning to them because they offer a better spending model as well as a better way to manage ourselves back to financial health.

Isn't it time to take better care of your own finances and spending? The answer in today's world has got to be yes. If you agree, do a little research and see what prepaid debit cards can offer you. You just might be surprised at how useful a tool they are.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

David T. Andrews is the owner/webmaster of PrepaidDebitCardsOnline.com. Learn how prepaid debit cards can help control your spending by visiting this webpage: 4 Great Reasons to Use a Prepaid Debit Card.