It’s possible to have your benefits transferred onto a prepaid card. But there are a few things you need to be aware of before going ahead:
- Prepaid cards come with a variety of charges. You’ll need to check with the provider before you buy.
- Having all your money on one card doesn’t allow you to keep your money for bills separate from your money for spending.
- Not all prepaid cards allow you to set up automated bill payments for your rent, gas or electricity. This can mean having to withdraw large sums of cash each time a bill needs to be paid.
But they do have some advantages:
- You can’t get into debt as there’s no overdraft facility on a prepaid card.
- It’s possible to make one-off electronic bill payments with some prepaid cards. This gives you control over when the payment is made.
One way of using a prepaid card is to use it alongside a bank account.
You leave enough money to cover your rent and other bills in your account, and load all of your spending money onto the prepaid card.
This gives you control over how much you spend. And it means you avoid bank charges and penalties on your account for returned standing orders or Direct Debits.