Prepaid Debit Card

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Personal Budget - The Best Way
If you want to know how to do a personal budget the right way, first you need to understand what the wrong way is. The wrong way to do a personal budget is to not do one at all. Just doing your budget in any way that makes sense to you will put you far ahead of the average person who tends to fly by the seat of their pants more often than not when it comes to money.

There is a very comm... Read personal finance article



Retirement and Disability Pay
Concurrent Retirement and Disability Pay (CRDP) is a phased-in reinstatement of the retired pay deducted from military retiree's accounts due to their receiving of department of veterans Affairs (DVA) compensation, showing on their Retiree Account Statements as the "VA waiver". The phased-in restoration started January 1, 2004 with the initial payments dated February 2, 1004.

A person i... Read personal finance article



Prepaid Debit Card
In the 1990s, credit card companies incurred heavy losses because of many credit card users defaulted on their payments. Thus, credit card companies had to come up with a new way to collect debts. It was during this period that credit card companies began offering secured credit cards and prepaid debit cards. Today, most credit card companies such as Visa, Mastercard and American Express issue prepaid debit cards.

The Prepaid Debit Card Concept

A prepaid debit card works similar to a prepaid phone card. You purchase a prepaid debit card by paying the amount you want as your limit. You can add funds to your prepaid debit card at a retail location or an online bank. You use the prepaid debit card like you would use a credit card. The only difference is that the transaction amount is deducted automatically from your prepaid debit card. You can keep using the prepaid debit card until the balance reaches zero.

Benefits of Prepaid Debit Cards

You can enjoy many benefits by owning a prepaid debit card.

* You won't need to carry a lot of cash with you every time you go out.

* If you travel frequently, you can use your prepaid debit card in countries where your card's issuing company provides this service. Mastercard, American Express and Visa all issue prepaid debit cards that you can use in many countries. Banks have also started issuing prepad debit cards to their clients.

* With a prepaid debit card, you won't have to worry about monthly credit card bills and missing credit card payments each month. If you are 18 years old or older, you can apply for a prepaid debit card and use it, irrespective of your credit history. Even if you have a not-so-good credit history, you can still avail of a prepaid debit card since this type of card requires funding.

* You can easily reload or add funds to your prepaid debit card. You can do this by calling the issuing company and authorizing them to transfer funds to your prepaid credit card or getting online and doing the transfer yourself. This feature of a prepaid debit card makes it very convenient for you to transfer funds, particularly when you are traveling or on vacation.

The Downside of Prepaid Debit Cards

Like other cards, the charges levied on prepaid debit cards can be high. There are fees for applying for a prepaid debit card, adding funds to it, exceeding its limit as well as cashing out and cancelling the card. So before you sign up for prepaid debit card, compare the fees offered by the issuing companies. Go with the one that has the lowest fees and the best terms. It costs about $5 to reload a prepaid debit card so make sure that you put an initial funding that is high enough. And when you need to reload your prepaid debit card, add enough funds so that you don't find yourself reloading frequently.

Keeping Your Prepaid Debit Card Safe

To access funds from your prepaid debit card, you will need to have a PIN. Keep your prepaid debit card safe from unauthorized use by changing your PIN every so often. You should also never reveal your PIN to anyone. It's also a good thing to ask your bank or issuing company to set a daily spending limit on your prepaid debit card in case you lose your card or someone finds out what your PIN is.

Even though prepaid debit cards have some disadvantages, their benefits outweigh them. Prepaid debit cards are especially a good solution for people who are unable to get approved for a credit card because of a poor credit history.

If you get a prepaid debit card, you should use it carefully and responsibly, much in the same way you would wisely use a credit card. Because it is very easy to reload a prepaid credit card, you may fall into the trap of using it too often and too much. Remember that you can only use it as long as you have funds in it and as long as you have funds to add to it. Keep track of your transactions so you never run out of funds.

For more prepaid debit card advantages and disadvantages try visiting BestOnlineCreditCardOffers.com where you will find valuable information on business credit cards, airline and air miles credit cards, instant approval credit cards and bad credit credit cards.

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Retirement Plan

If your employer offers a retirement plan, then taking advantage of that plan is essential toward building wealth. Many companies are now offering what is called 401(k) plans which is an IRS code for this type of retirement vehicle. Companies contribute a portion of their profits to these plans and allow you to put some of your money in tax free with an additional company match offered too. Quite frankly, there are few other ways to effectively build wealth as fast and as securely as a 401(k) plan.

If your new employer has a 401(k) or similar retirement plan, then one of the first things you want to do is sign up as soon as you are eligible to do so. Some companies will make you wait six months or one year before you can join up and then you are only fully vested after a certain period of time, usually three years. This means that not all of the money in your account contributed by the company belongs to you until you are fully vested.

Your employer will explain all of the details of your 401(k) plan before you must make the decision whether to enroll or not. The good news is this: more and more companies are automatically enrolling you so that if never contribute a penny you could get profit sharing of 3 or 4 percent of your salary added to your account per year.

In addition, most plans will allow you to contribute a certain percentage of your salary per pay period and that money will not be subject to federal government tax. This means if your plan allows you to contribute 10% and you choose the maximum amount, then your $50,000 salary is effectively reduced to $45,000 as far as the IRS is concerned. The less that you have, the less you'll be taxed. Best of all, the "missing" $5,000 is fast at work in your interest earning retirement account.

It gets even better than that: many companies will match your earnings. For example if you kick in a dollar, the company will add in 50 cents up to a certain amount. So, for every dollar you earn, you get a 50% return, not including profit sharing. Do you know of any other place where you can earn 50% on your investment? Nothing legal, that is!

So, open up your retirement account as soon as possible and watch the funds flow in with your company match and profit sharing and your personal tax free contributions.

Joseph is the proud owner of Finance Guide, a website that will explain everything you need to know about Personal Budgets. We invite you to visit our site today and see what we have to offer.




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Prepaid Debit Card
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