Every day, it seems like more people are becoming aware of debt problems. A lot of the time, it’s because they themselves are facing the ever-more real prospect of sinking into a financial pitfall. Luckily, there are a number of things that people can do to get themselves away from debts or avoid them in the first place, though one often-overlooked option is the use of a basic bank account with a prepaid mastercard. It may seem simple, yet this approach regularly proves to be one of the best.
Many people may gloss over the opportunity to get a basic bank account, yet there’s good reason – banks simply don’t advertise them openly. That’s because they usually cost them money, often going an extra mile to make the process of opening one particularly bureaucratic. Unless you ask for one directly, bank staff may have otherwise been informed to avoid mentioning them.
This is a sad state of affairs, especially if people are unable to open a regular bank after failing the credit score test. Until the laws surrounding these changes, you will simply have to be up front and honest with the bank and tell them you need one. There is no risk to the bank to open a basic account, so they cannot refuse.
However, such deals are not completely free of charge; while you don’t have an overdraft to worry about, banks will try and recoup losses with other strategies. Should you need to make a direct debit transaction or payment when there aren’t funds in your account, you will be charged anywhere up to £20.
The best plan, should you open such an account, is to ensure you know exactly how much money you have and manage it closely. Luckily, with developments in internet banking, this is easier than ever.