Prepaid Credit Cards
The economic recession coupled with student loans has troubled many recent grads’ bank accounts and left them with few options other than bankruptcy. With personal bankruptcies more common than ever before, some experts are wondering if a lesson in finances at an early age could have helped young adults better manage their money and avoid substantial debt. Pre-paid credit cards can help parents teach their children about credit and debt before it’s too late.
If you or someone you know is struggling to stay financially stable and is considering filing for bankruptcy, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. to discuss the details of your financial funk with a professional. Call 561-353-2800 today to schedule a free initial consultation.
The Difference
Prepaid credit cards differ from actual credit cards in a number of important ways, including:
- Parents can set limits on spending and monitor accounts
- No risk of late payments or overcharging
- Relatives can add money to the card
- They do not require a credit check
Some prepaid credit cards can actually help your teen build credit while they spend; however, this option is not always available.
The Benefit
When teenagers start spending money without their parents’ oversight, things can get out of hand. Parents no longer know where their child is spending money or on what. In addition to the safety risks of youngsters handling cash, prepaid credit cards enable parents to discuss spending practices with their child. If poor habits are being developed and your teen is consistently over spending, you can help them break these habits before they face long-term consequences.
Contact Us
Filing for bankruptcy can be the first step to financial freedom. The West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A. can assist you with the process. Call us today at 561-353-2800 to determine your legal options.
