Pre-paid cards 'could help reduce debt risks for teenagers'
Pre-paid cards 'could help reduce debt risks for teenagers'
- Monday, 20 July 2009While they may not replace traditional bank accounts for teenagers, pre-paid cards are a "useful alternative".
That is according to Szu Ping Chan, personal finance writer at Lovemoney.com, who asserted that their simplicity makes the cards a good option for young people.
She made her comments following the recent announcement that O2 is going to launch a pre-paid card aimed specifically at teenagers.
The new card allows users to draw out money from an ATM and to spend on the high street and online, but access to certain websites and retail outlets, such as those linked to gambling, is restricted.
Potentially, this could help to reduce the need for young people to seek
debt management help later on in life.
Ms Ping Chan noted: "It is a useful alternative to the traditional bank account because it is simple you don't have all these forms to fill in and endless trips to the bank.
"I don't think it will take over [from] the bank account because that goes through with [in] life but it is a convenient alternative."

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