Prepaid cards remove risk of massive debts
25 August 2010 15:42:41
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| Students can avoid getting into debt by using prepaid cards. |
Tim Sloane, director of the prepaid advisory service at the Mercator Advisory Group, said that one group of people who could benefit from using a prepaid card is students.
"It gives them a way to make purchases with the freedom of a credit or debit card without the risk of getting into massive debt or overdrawing accounts," he explained.
"They also can receive money electronically from relatives and other sources."
Kirsten Trusko, president and executive director of the Network Branded Prepaid Card Association, agreed that prepaid cards are a "must-have" tool for today's college students.
She pointed out that university is expensive and that a prepaid card is "an excellent way to affordably access the basic financial services a college student needs in a way that is secure and convenient for them and their parents".
Students who start university this autumn will typically graduate with almost £25,000 worth of debt, the recent Push Student Debt Survey revealed.
Undergraduates now owe £5,600, on average, for each year of study, but this figure could be prevented from rising by prudent use of a prepaid card.
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