Prepaid credit cards ‘can help with finances’

People can be helped to deal with finances through the use of prepaid credit cards, it has been suggested.

The products can be a “safe” way to teach young individuals about money, according to Chris Reddish, chair of the Prepaid International Forum.

He explained that this is because they allow users to make payments without the risk of debt being accrued.

The cards can allow consumers to have “financial responsibility, but in a managed way”, Mr Reddish remarked, commenting that they do not create the “temptation to spend more than they can actually afford”.

He went on to note that they enable those with past debt issues to make payments through avenues such as the internet without the need for a bank account.

Elsewhere, David Kuo from the Motley Fool has advised people to pay back more costly forms of debt, such as credit cards, before focusing on other products such as loans and mortgages.

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