Prepaid cards 'on the rise'
19/02/2010
The use of prepaid cards is likely to increase in the UK as people who have had debt management problems seek to rebuilt their credit status, it has been suggested.
Spokesperson for credit and finance agency Equifax Neil Munroe said such products are becoming "more prevalent" as the economy grows again after the recession, adding: "There are a lot people who have impaired credit files and pre-paid cards are a good way of restoring their credit history."
Such cards help people to "prove that they are capable of paying back debt", Mr Munroe continued.
The expert added that as there have been so many issues concerning repayments of credit cards, the products are by necessity becoming more prevalent in the marketplace as an alternative to conventional credit card facilities.
Overall consumer spending - by cards and other means - was up last month, seasonally-adjusted figures from the Office for National Statistics have shown.
These showed a 3.2 per cent rise in the value of retail sales on a year-on-year basis, with volume up 0.9 per cent.
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