by Techsplosive on July 21, 2010
In the current economic climate, more people are choosing non-traditional finance options instead of banks. Because banks can be more expensive, and have more restrictive credit requirements, consumers are finding more flexibility for their financial needs with products like prepaid credit cards.
A prepaid credit card is an ideal solution for a) someone without a bank account, b) someone with a moderate to low credit rating, c) someone looking for the convenience of a credit or debit card without high fees and interest rates. Prepaid credit cards also make great gifts. Instead of choosing a gift card at a specific store, prepaid credit cards can be used almost anywhere.
Some prepaid credit cards offer an option for direct deposit, giving the customer immediate access to their paycheck or other sources of income. Often there are additional options for adding cash to the card, including wire transfers and even PayPal. The convenience of having multiple ways to add cash to the card is one of the best benefits of using prepaid credit cards.
For people who do not have or prefer not to have a bank account, prepaid credit cards are much easier and less expensive than check cashing services. They are also easier to use for paying bills than mailing money orders. For those with poor credit scores, many prepaid credit cards offer the ability to build back a good credit history. When using the card to pay bills, reports are made to credit bureaus and credit scores can begin to rise.
Almost any prepaid credit card will also have the ability to associate your balance with your name and account number, so that in the card is lost, your money is not. Most cards will also offer ways to access your account on the go, so that you always have access to your balance information.
by Techsplosive on July 20, 2010
As the national economy continues to falter, many families and individuals have understandably fallen on hard times. In July 2010, the official unemployment rate had topped 9 percent nationally, a number which is actually underreported due to discouraged job seekers who eventually fall off the unemployment ranks. More than 12 percent of the population may actually lack employment. Millions more have taken significant pay cuts. The situation has forced families to cut spending.
Before this period of hardship began, the country was experiencing an unprecedented buildup of household debt. This was due in part to high levels of confidence in future economic conditions by the public and to an easy-money situation spurring lower lending standards. High levels of credit card debt became the norm, and the lenders continued to encourage people to spend more and more money.
So what happens to those who incurred household debt over the last decade yet can no longer afford to manage the outstanding balances because of job loss or pay cuts? Many of them end up in bankruptcy court due to their inability to service their debts. Individuals should reserve bankruptcy as a last-resort option, as it will severely damage credit reports. It will take the average person years to undo this damage.
For anybody in these dire financial situations, debt consolidation is often the most prudent and effective alternative to bankruptcy. Debt consolidation is a credit-friendly way to lower your total monthly payments to manageable levels. It can help you get creditors off you back. Debt consolidation and debt counseling can provide you with the pathway to work out past due loans and lower interest rates, leaving you with less monthly payments to deal with. If you are one of the countless Americans who have experienced job loss or some other financial catastrophe, you should meet with a credit counselor to talk about debt consolidation before considering bankruptcy.
