Credit Business

With it still being tough out there on the economic front, it would make sense that more and more people are looking inward to solve their own financial problems. One of the ways in which cash-strapped folk are handling this situation is by obtaining prepaid credit cards, which allow many of the same flexibilities as traditional credit and debit cards but none of the harassment and liability that comes with having an account with a lender.

A recent report released by the Consumer Federation of America outlines the reasoning behind this trend. Many individuals feel disillusioned with traditional banking, for reasons including poor credit and lack of financial solvency leading to overdraft fees and excessive penalties any time a financial deviation occurs.

But it’s not just those with poor finances that are turning to prepaid credit cards: many well-to-do people are finding there are many benefits in using this approach. Parents, for example, can give their children access to a pre-determined amount of money and monitor spending. When the card runs out of cash, kids will then have to prompt their parents for more