10 July 2008
Many Britons heading to sunnier climes this summer will use prepaid plastic cards to help control their spending while abroad, it has been suggested. Virgin Money has stated that 40 prepay products are now available on the market and are becoming an increasingly attractive option for consumers worried about spending too much on their credit cards while enjoying their holiday. Virgin Money spokesman Grant Bather remarked that one benefit of the card is that it is a safer alternative to carry around on holiday than cash. "Pre-paid cards remove the temptation to run up debt while you're on holiday as you can only spend the amount that is loaded on your card. They're a good discipline to get into," he added. However, the firm warned that consumers should be wary of possible monthly fees attached to prepay cards as well as the difference between one-off application charges from different companies. Defaqto recently revealed that the interest rates on credit cards are higher than when the base rate was last at five per cent in December 2006.
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