Prepaid credit cards can serve as a great tool in helping people stick to a budget. No matter how good of a bookkeeper one might be, it is often difficult to keep track of exactly how much money has been spent on certain items during the course of a month. Dollars seem to disappear sometimes, and budgets quickly fall by the wayside. If a person allots a certain amount of money for something such as food, it is possible to prepay that amount on a credit card. Each time it is used, the remaining amount can be checked, so a person knows exactly how much he has left to spend for the month.
Prepaid cards can also be used for emergency situations. Almost everyone has experienced problems with a checking account at one time or another. Something comes up that has to be paid, and there simply is not enough money to cover it. A prepaid card that is reserved for difficult times can be a great help in this situation, especially to those who do not have regular credit cards.
Giving Prepaid Credit Cards as Gifts
Prepaid credit cards offer an alternative to gift certificates. Unlike a certificate, a card allows the receiver to shop anywhere for something he really wants. Also, gift givers can put as much or as little money on the card as they want. Although they might not be at top of everyone’s Christmas list, prepaid gas cards can make great gifts. For those who regularly dig for change in order to fill up the tank with enough gas to get home, there might not be a better gift out there. Companies can now package prepaid cards, gas or otherwise, as presents, enclosing them in festive envelopes that have a place for a personal greeting on them.