Pre-pay card to go on trial in Liverpool
The high levels of consumer debt in the UK have resulted in many people seeing their credit rating go through the floor as a result of being unable to keep up with repayments on loans and credit cards, and for many this means being unable to enjoy the convenience and ease of debt or credit card facilities, and in some cases being unable to open a bank account.
 This can make things very difficult, making it difficult for consumers in this situation – however, there could be a solution available that has already proven successful in the United States.
Liverpool is to be the first city in the country to trial a new pre-paid Mastercard known as the Bread card. The pre-paid Mastercard is used in the same way as a pre-paid phone card, where the cardholder is able to load cash onto the card and then use the card up to the amount that has been loaded on to it.
This means that the cardholder cannot get themselves into debt by using the card as he or she would be able to do with a credit card, and they can enjoy the ease and convenience of using a card to make high street, phone, and Internet purchases in the same way as a debit card.
This card has been deemed as ideal for those that are unable to get debit card facilities from a bank due to poor credit and are unable to get credit card or simply don’t want to get into further credit card debt. In America the pre-paid card industry currently stands at eighty billion dollars a year, but by the end of the decade is expected to hit around three hundred billion due to the rising popularity of the scheme.
One spokesperson for the scheme stated: " This card will give people the chance to rebuild their credit rating, which is great for those who get into a bit of a mess during their teens and early 20s. With such a big focus on Liverpool as the Capital Of Culture, Bread thought the card would be perfect to launch in a city which seems to be growing more rapidly than any other in the UK."
Tom Smith
24th February 2007
More information:
- Choosing the Right Card
There are literally hundreds of credit cards on offer in the UK, and the list is growing daily. So, which is the best on offer? It very much depends on how each person plans to use their card. The answer lies in asking one simple question; "What do I want to use a credit card for?"
- Causes and Cures Of Credit Card Debt
For some, credit cards can prove a temptation too far, and soon they find themselves in debt. Simple precautions will keep the savvy card holder from such dangers.
- Tips On How British Women Can Climb Out Of Their Growing Credit Card Debt
More women in the UK are spending money on credit cards than at any other time. In percentage terms, there are now more British women spending more each month than they earn.
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