Reality TV show star Kim Kardashian wants your teen to shop with a prepaid credit card. The Kardashian Prepaid MasterCard was recently launched at a New York nightclub, according to the ABC News. The prepaid credit card allows a parent to put money on the card and keep track of their teens’ spending via cell phone.
Prepaid cards can limit debt
Using a prepaid credit card can allow cardholders to avoid wracking up huge amounts of credit card debt. Prepaid credit cards are popular with people who have bad credit or no established credit history, as well as people with low to moderate incomes. Other people use prepaid credit cards to limit their spending as part of a debt reduction plan.
Because many prepaid credit cards require people to pay fees to activate them or when making a purchase, it’s important to read through all the terms and conditions before signing up.
It’s odd that MasterCard would team up with Kardashian, who is known for her lavish lifestyle and not as an example of fiscal restraint — she recently spent $30,000 on a purse, a representative for Mobile Resource, which is the company releasing the prepaid credit card, told ABC News. It’s even odder that the prepaid card is being targeted at teens, who are vulnerable to peer pressure and often pester parents for funds to keep up with the latest trends.
Young people do need to learn about using credit wisely. But they also need lessons in saving, budgeting, and wealth building. Having a credit card — prepaid or not — isn’t necessarily the best way to teach kids about being fiscally responsible, and certainly not if it is being marketed as a way to keep up with the Kardashians.
Sticking with a debt reduction plan often means making sacrifices. Don’t expect a quick fix solution to your credit card debt woes no matter what you hear on TV, the radio, or the Internet. Take time to carefully research debt solutions to find one that can give you real results.
Consolidating debt has helped many people struggling with huge levels of debt, and while there are many companies out there who claim they can help you with this process, you can accomplish the same thing on your own. There are several ways you can restructure your debt, including applying for a debt consolidation loan or making use of low-interest credit card balance transfer offers.
Try contacting your creditors and negotiating a debt settlement that allows you to pay off a reduced level of debt, but be aware that most creditors won’t discuss a debt settlement plan until you’ve missed a few payments. Also, you may have to come up with a lump sum of cash to pay off the debt. Skip using a debt settlement firm as a middle man to avoid fees or potential scams.
If you can’t figure out how to get out of debt on your own, find a reputable debt counseling firm to help. Debt counseling can help you figure out where you went wrong with your finances and help you begin to recover. Debt counseling should include strategies to cope with spending issues, budgeting, saving, and other tips to help you improve your overall financial situation.
If you’re looking for help with debt, it’s important to find the right allies. There are two types of agencies that you can turn to to get help with debt reduction: debt counselors and debt settlement firms.
The debt counseling firm should offer tips on budgeting, saving, and debt reduction to help you get back on track. Some even offer classes that can help you learn more about managing money.
Look for a debt counseling firm that is licensed and accredited according to the laws of your state. Not all states require licensing or that agencies be registered, so it’s important to check out the reputation of any debt counseling firm you are considering before signing up.
Debt settlement firms
You’ve probably seen or heard ads offering credit debt relief services on the radio, TV, or Internet. A debt settlement program offers to help you negotiate a lower payoff of credit card debt and other bills. Be cautious about signing up for a debt settlement program because many of them charge a high fees and some never send the payments you make to creditors.
In most cases you can speak directly with your creditors about settling debt. But if you choose to use a debt settlement firm as a middleman, take note of a recent rule overhaul by the Federal Trade Commission (FTC). The change is that companies offering debt relief services over the phone cannot collect advance fees from you before settling or reducing your debt, before having an agreement for debt management or other services in place, or until you’ve made at least one payment to a creditor as a result of a plan negotiated by the debt relief provider.