Costs on pre-paid debit cards may add up to lots of cash fast
Print View - Published: Sun, 30 Jan 2011 at 4:39 AM
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Pre-paid debit cards really are a good thing, but the costs can eat up cash, and quick. If an individual is picking a prepaid debit card to use, comparison buying ought to be done before picking one. If consumers aren't careful, they might discover themselves getting a payday cash advance loan just to pay for their pre-paid cards.
Check your prepaid card charge so as to stay away from getting drained of money
It is not a poor choice to get a pre-paid debit card. The card is received while you continue to put cash into an account for the card. It is much like a bank offering a debit card for checking account. There is not debt created with it and real cash is used meaning it is better than a charge card. However, the fees may add up to lots of money, and quick. The first fee to look at is the monthly maintenance fee. The standard appears to be about $5 or less. For instance, GreenDot is a prominent pre-paid debit card line. In case you are depositing over $1,000 a month or are making more than 30 purchases a month, the fee is waived by GreenDot. The fee is only $4.95 though. Paying $5 a month just to have the account results in a quite penny and a lot of instant cash over a year.
Be sure you understand what you're getting into
When a product is sponsored, be careful. Celebrities and sports will endorse many goods. Many of them are really great. When a celeb endorses something, people are willing to pay more for it and it gets instant credibility. The product doesn't have to be good at all. Withdrawal and ATM fees are ones to look out for. Occasionally, a pre-paid card will only say ATM fees occur if it's an ATM out of its network. Check to make sure the ATM network is not just one ATM in the county.
The advantages
Fees do not change like they would with a checking account through a major financial institution with a prepaid debit card. Many like being able to reload the prepaid cards anywhere they want. It's very easy to do. There are a lot of people that do not want to be dealing with banks right now. Thinking about how much scandal has happened, it makes a lot of sense.
Citations
Green Dot
mygreendot.com/greendot/
About the Author
Resource for this article - Prepaid debit card fees can add up to a lot of cash quick by MoneyBlogNewz.
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