Personal finance blog NerdWallet offers a number of basic suggestions for prepaid card users on how to keep costs low, including comparing fees, reload options, and account access tools. Perhaps the most important part comes as the end, where the article promotes one of the fundamental value propositions of prepaid cards: controlling spending.
Once you’ve found a prepaid card that keeps costs low, focus on how to make the most of it. For one, prepaid cards can double as solid budgeting tools.
Since your spending is limited to the money loaded onto your card, you can be strategic with how much cash you load. Timing is another crucial factor. Adding too much money before you head to the mall, for instance, could end up hurting your budget. Although they may be subtle, these kinds of moves can help you make the most of your prepaid card.
As disclosures become more standardized under the CFPB rules, the industry should spend some time reviewing consumer-oriented advice columns and articles to see what kinds of problems customers are facing and what kinds of messages might resonate in future marketing.
Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group
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