Prepaid mastercard to be offered by debt management group
As more and more people fall behind with repayment and financial responsibilities in the UK, many have found themselves financially excluded in terms of being able to get a debt or credit card, which can mean the inability to make purchases by phone or online, as well as being unable to enjoy the convenience of paying by card rather than having to carry cash around. However, one debt management company will now be offering a prepaid mastercard to some of its clients, which could help them to enjoy the benefits of credit card use without the ability to get further into debt.
 EuroDebt Financial Services will be providing the prepaid credit card to many of its clients that earn a regular income. The card has to be ‘loaded’ with cash before it can be used much in the same way as a pay as you go mobile phone has to have prepaid credit before it can be used. The way that the prepaid card works means that consumers that have been excluded from debit and credit card use due to poor credit can once again start enjoying the convenience of using a credit card but without being able to spend beyond their means, as the card cannot be used unless there is already money loaded on to it.
One official from the prepaid card firm Advanced Payment Solutions stated: “Technology is fast changing the way we transact purchases and even socialise. Having a payment card that lets you take advantage of these new developments has never been so necessary, but at the same time consumers have never had to have so much willpower to avoid debt. By separating the credit facility from the facilities offered by a card we are offering a truly unique product and we are delighted to be able to work with alongside firms like EuroDebt to help the indebted get back on their feet. Although the card is primarily designed for a more mainstream audience, this new partnership with EuroDebt reinforces the attractiveness of the prepaid model for yet another consumer group.”
Alisdair Milton
11th January 2007
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