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Use a prepaid card to enable better budgeting
Recent news reports have stated that inflation in the UK reached a high of 3.7% in December 2010, the highest level seen for the previous eight months*.
A prepaid credit card offers a cheap and convenient method of managing monthly outgoings to ensure that people can set budgets and then help them stick to it. The very nature of prepaid cards lend themselves to good budget management; funds have to be preloaded to a card. When the money is used up, extra funds need to be added.
Unlike credit cards, no interest is charged for purchases made using the card which means goods bought won’t run up interest charges and contribute further to any outstanding debt. Some prepaid cards offer free purchase protection and cashback for online purchases which can make budgeting not only a beneficial experience but a rewarding one too.
Cards such as the Cashplus prepaid Gold MasterCard® allow customers to pay bills and make regular payments using their card. In this regard, people can easily budget for household monthly outgoings leaving them with a good idea of what disposable income is left over each month. Bills can be either set up to be paid automatically or paid directly online, over the phone or in store.
Topping up a prepaid card with money regularly can be quick and convenient. The Cashplus card issues each customer an individual Account Number and Sort Code which allows them to benefit from topping up their card account from a bank that uses the Faster Payments service. Therefore, if a top up is received by Cashplus from a bank using this service before 3:30pm, the load will be available to spend by the prepaid card accountholder that same day.
A Cashplus account can also be topped up at any UK Post Office® location, via epay or through a network of over 1000 retail stores. The balance of the card can be tracked and managed using a secure online banking facility at any time of the day allowing spending to be easily monitored. For household budgeting, up to four extra cards can be added to any one Cashplus account. This can distribute budgeting responsibility among other family members or house share occupants.
The convenience of topping up a prepaid card account combined with bill payment flexibility can allow prepaid cards to aid households in managing their costs and outgoings. Being able to set a budget by preloading funds and the attractive additional benefits mean prepaid cards are a good way of enabling people to budget better and ultimately weather a climate of increasing costs.