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SOUTH CAROLINA
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Credit card debt awaits those who fall for prepaid cards

In a struggling economy, it is tempting to find alternative solutions to cash flow that do not, at least on the surface, contribute to existing debt. But experts warn that credit card debt can still arise from the use of so-called "prepaid" cards. South Carolina residents seeking to keep their balances low may benefit from researching these options carefully prior to committing to any kind of card plan.

Many consumers are struggling to keep debt to a minimum in a shaky economy, and that means avoiding traditional credit cards with high interest rates. However, the lure of prepaid cards may tarnish some upon the realization that hidden fees and other payment structures can end up costing consumers just as much as a standard card in the long run. Consumer Report suggests these fees can stem from unusual places, such as not using the card regularly, or attempting to utilize ATMs.

Prepaid cards have become popular since the economic crisis began, particularly with low-income households and students who cannot afford the high costs of proper credit cards. The Consumer Financial Protection Bureau is working to cut down on the prevalence of these cards, which can bring about considerable financial difficulties for those who use their services. Most especially they are working towards the fees becoming more transparent for prepaid cards across the board.

There is no easy answer for financial stability in the midst of an economic crisis, as South Carolina residents understand. Those suffering from credit card debt and other sources of debt can take solace in knowing there are many ways to deal with such financial backlog. Debt restructuring and bankruptcy are both viable options for those facing serious debt issues.

Source: Loveland Reporter-Herald, "Consumers warned about prepaid cards," Heather Somerville, July 30, 2013

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Reed Law Firm, P.A.
220 Stoneridge Drive,
Suite 301

Columbia, SC 29210

Phone: 803-726-4888
Fax: 803-726-4887
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Reed Law Firm, P.A.
1807 West Evans Street,
Suite B

Florence, SC 29501

Phone: 843-679-0077
Fax: 843-679-0667
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