Prepaid cards 'may help to prevent debt'

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Prepaid cards 'may help to prevent debt'

Using a prepaid card is one method being suggested to prevent consumers from getting into debt.

David Rodger, managing director of the national charity the Debt Advice Foundation, said that an advantage to the product is that it stops people from going into the red and acquiring interest because they can only spend what is on the card.

"The customer gets all of the advantages of using a credit card, without the risk or temptation of spending more money than they have," he said.

These cards can still be used in the same way as a credit card, enabling users to pay for things over the phone or online, he explained.

However, Mr Rodger concluded that there is one issue in that consumer will still have to limit themselves to only loading onto the card what they can afford.

Recent statistics from unbiased.co.uk stated that credit card debt in the UK currently stands at £54 billion, with the average person needing to use their first 50 days' worth of earnings just to pay off the interest they will accumulate.

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