I’ll never understand people who don’t have bank accounts. It’s just not cost effective to use check cashing places or prepaid cards. If your unable to control your shopping/spending you should use cash. But really in our society it’s just better to have a card in case of emergencies, if you need to rent a car or auto bill pay (helps to rebuild your credit).
I was reading ‘The Prepaid Card King‘ in Fortune Magazine (9/5/2011) about Green Dot and it’s founder. I find all of these new prepaid cards fascinating. I assume the ideal customer are people with less than stellar credit histories, Native American populace, illegal immigrants, low income people, jobless and people who don’t ‘believe’ in banks. Here are three cards that I found online or have seen advertised over the past few months. Prepaid cards in my opinion are here to stay. Did you know that some states are issuing unemployment benefits using the cards? I’m sure it saves a lot of money with not having to print or mail out checks. I just am concerned about the fees that people who don’t look at the long term problems of the fees that the cards charge. Fees to reload, check the balance, transfer fees.
I just think it’s easier for the average person to have a regular bank account so that your money is insured by the federal government. I do understand people using it for the unemployment benefits since it’s not a choice rather you will be enrolled but for the people who rely on these programs should reevaluate how they decide to manage their money.
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