Prepaid cards, which can be pre-loaded with cash, could be a good alternative to a credit card for people while on holiday or at home.
According to Carlton FX, the use of credit cards while abroad is declining due to their charges and using a bank card overseas can be just as costly.
The latest data from the Payments Council revealed that debit card usage has increased by 12.4 per cent in the last 12 months.
This means that Brits are spending a total of £12.5 billion on debit cards and accruing charges of £144 million.
Most banks charge for cash transactions or purchases made via a debit card while abroad, so one way to avoid this is to use a prepaid card.
Rupert Lee-Browne, chief executive officer at the foreign exchange company, said: "To avoid being stung by high fees and unnecessary charges, prepaid currency cards are a must have for anyone travelling abroad."
There are plenty of prepaid cards on the market so it would be wise to compare and contrast the ones available.
A prepaid currency card can be preloaded with Euros, dollars or sterling and used abroad to avoid high costs.
They are also available in the UK and can be used instead of a credit card.
A prepaid card can be used to make purchases and withdraw cash. As they do not have overdraft or credit facilities, the card-holder can only spend the balance on the card.
In this way, a consumer can ensure they stick to a budget and do not run the risk of getting into debt through overspending.
Some may have a monthly charge but they are a good option for anyone with a poor credit rating.
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