The Price of Pre-Paid Credit Cards

Recently I had a family member come to me asking what I thought of pre-paid credit cards as a method of purchasing things on the internet. They did not have a credit card and figured if they put their money on a prepaid card they could control their spending and use it only when they needed it.

I suggested they read the "fine print" and if they liked what they found out to try it out and let me know how it went.

I didn't receive a call in a week so I called them back and you guessed it ... they were very unhappy. The 25 dollars they put on the card amounted to less than 17 dollars is actual spending money after set up and transaction fees.

The New York Times in conjunction with the PBS Frontline website has a great series on "Hidden Price Of Pre-Paid Debt". Make sure to check video link half way down the page.
The complete series on Banking and the American Consumer - "A Card Game" from PBS Frontline now available here.

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Financial Blog of Mike Hassard | Life Insurance Debt Investing Mutual Funds |

1 Response to "The Price of Pre-Paid Credit Cards"

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ComparePrepaid Says....

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