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Can prepaid cards help teens learn to manage their money? Atlanta, GA

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Can prepaid cards help teens learn to manage their money?

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Prepaid credit cards have been growing in popularity in the last few years, as access to card-based banking has become an important convenience for many Americans. Prepaid cards can be very helpful to those without credit cards or access to a checking account, enabling them to pay bills online and securely transfer money to a family member. Prepaid cards have also become popular among parents who need to provide their children with some spending money but want to limit access and ability to overspend.

A prepaid card may be tempting for parents who are looking for an easy way to monitor and limit their teen’s spending. Indeed, the cards do prevent costly overdraft fees and can be used in a way that encourages responsible spending. However, unlike cash, there are fees associated with these cards that could end up consuming a large portion of the money added to it. For example, some prepaid cards have activation fees that are as high as $14.95.

Prepaid cards, even the one endorsed by teen idol Justin Beiber, are largely unregulated by the federal government. The Consumer Financial Protection Bureau has caught wind of this problem and is currently taking public comments and appears to be gearing up to issue guidelines, but for now the only regulation in the prepaid market is consumer choice.

This means that in order to find the best deal that makes financial sense for the family, it is necessary to read a lot of fine print. It is also necessary to teach kids about the danger of fees. As with banking fees, small transactions can add up to big losses if the card user isn’t conscientious about fees.

When fees and interest rates add up, Atlanta consumers could wind up in a tough financial situation, even if they have been planning carefully. Falling behind on loan payments or not having access to cash to pay important bills can be a very stressful situation. For those who are unable to continue to keep up with financial demands and who do not have sufficient income to bounce back on their own, bankruptcy is an option to help resolve debts.

Source: USA Today, “Are prepaid cards and teens a trustworthy mix?” Susan Tompor, April 20, 2013.

Information about declaring bankruptcy can be found on our law firm’s website.

Posted on behalf of Gingold & Gingold

1718 Peachtree St NW, #385
Atlanta, GA 30309

Phone: (404) 685-8800

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Gingold & Gingold LLC
5.0 / 5.0

Based on 28 reviews

Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

All C.

Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

Karen B.

Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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