It can be easier said than done to keep credit card debt at bay. When it reaches a certain point, you have to consider all of your debt relief options, including bankruptcy. Depending on your unique circumstances, filing for bankruptcy may be the best way to resolve your problems with unmanageable debt.
The story of how the credit card industry aggressively targeted college students and people with doubtful (or nonexistent) credit histories and pitched credit card applications at them is now well known. Federal financial reform legislation has reigned in the worst of those abuses.
The Great Recession and its uncertain aftermath have also had a chastening effect on taking on too much debt.
But life happens. Medical bills and other contingencies can send even the best-intentioned person into reluctance reliance on plastic cards.
Does this mean that pre-paid debit cards are preferable, because they remove the temptation to become overextended?
It’s clear that the pre-paid cards are increasingly popular. Banks have been pushing pre-paid debit cards for nearly a year now. Large banks started focusing on marketing these cards after the Federal Reserve capped the fees that the banks are allowed to charge merchants for the use of debit cards.
Many consumers have embraced the pre-paid cards. The amount loaded on them is expected to increase to $117 billion by next year. That is an increase of 200 percent in just the last three years.
A key group that is using the cards is Americans who do not have a bank account. This group is surprisingly large; it may include as many as 17 million people, according to the Federal Deposit Insurance Corporation.
Source: “Prepaid cards are here to stay: Do you need one?” Christian Science Monitor, Odysseas Papadadimitriou, 8-9-12
Our firm represents clients in debt relief matters such as those discussed in this post. To learn more about our practice, please visit our bankruptcy page.