Prepaid currency cards can charge for withdrawals abroad that could contribute to debt problems
Prepaid currency cards can charge for withdrawals abroad that could contribute to debt problems
- Tuesday, 19 October 2010At least 72 per cent of prepaid currency cards issue an individual charge every time a withdrawal is made overseas, which could contribute to
debt problems.
Sainsbury's Finance revealed on October 18th that Brits have withdrawn the equivalent of £3.87 billion in foreign currency, while they were abroad over the last year.
These withdrawals could all add up as those who take out £50 at a time tend to be charged a higher percentage of the cash than those who take out £150.
Scott Gorman, head of travel money at the supermarket bank, said: "We believe that many Brits travelling abroad who purchase a pre-loaded currency travel card are getting a raw deal.
"These cards are supposed to give travellers financial peace of mind whilst they are away from the UK and in theory should mean that they don't find themselves overspending and accruing charges for overseas transactions."
He recommended the Cash Passport, which Sainsbury's provides, as it does not charge for withdrawals or transactions.
Bob Atkinson, travel expert at travelsupermarket.com, recently suggested that all inclusive holidays can help consumers stick to a budget.
This could reduce the risk of getting into
debt problems in order to go on holiday.

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