With a wide array of credit and debit cards and now mobile money becoming popular why would you use a prepaid card? Here are five reasons that will convince you that prepaid is the way forward:
- No debt
As your card comes loaded up with funds before you start using it you can only spend that amount. If you get carried away and spend more than you originally expected you won’t be caught in a debt spiral as you potentially could with a credit card.
Carrying cash around always has its dangers; the same can be said for someone copying your credit or debit card. With some prepaid cards you still require a pin code and in addition if somehow your pin is exposed you’re limited to how much money you can have stolen.
A great way to keep within a budget for a holiday is to load up a prepaid card with the amount you’re looking to spend. You can never exceed that limit and you don’t have to worry about withdrawing cash.
Teach your kids the ability to budget and spend wisely by giving them their allowance on a prepaid card. They won’t be able to abuse your credit card and will learn valuable budgeting skills.
Prepaid cards make for fantastic gifts. Give a friend or loved one a mall gift card and they have the option to buy from any store in that mall.
There are some fantastic benefits in both giving and receiving prepaid cards, many of which you won’t find with regular credit and debit cards. Prepaid is growing rapidly and promises to be part of the next big wave of payment tools.