It can be difficult sometimes to control spending. When you use a credit card, there may be a tendency to use it just because you can and before you know it, your credit line is maxed out and you're in trouble. Maybe you just don't want to use a credit card or perhaps for some reason you can't qualify for a card. A good solution for you might be a prepaid credit card. Most prepaid cards don't require a credit check so anyone can get one.
Prepaid credit cards allow you to deposit a specified amount of money onto your card and then you can only spend that much money. You don't have a credit line to worry about. The only funds available to spend are the ones that you place onto the card yourself.
If you're trying to stay on a budget, these cards can really help. Set a grocery budget by putting your grocery funds onto a prepaid card and then use the card for your weekly shopping. This could also help you save money because at the end of the month, you could put the leftover balance into a savings account. Without the cash in your pocket, you won't spend it just because you can. You could do this for other expenses as well--like lunch, gas, or other daily expenditures.
If you have a college student or teenager, giving them a card like this can help teach them money management skills. They'll be able to have the flexibility of carrying a card in their wallets without the problems that can come from using a traditional credit card. It also gives you peace of mind as a parent to know that they have access to funds if an emergency arises.
Another good thing about prepaid cards is that you don't have to carry a lot of cash around with you. You have flexibility and don't need to worry about having just the right amount of cash to pay for purchases or bills. I don't like to carry a lot of cash on me just for safety reasons.
In addition, prepaid cards also generally offer the same protection as a traditional credit card. If you properly register your card and read all the information including the terms and agreement, a card like this can a great way to go. Just be sure to know what the fees are and do your research.
