Credit Cards Users’ Spending Habits are quickly changing in this economy

With the economy still in a deep recession, consumers are changing their buying habits. Not only are people spending less, they are evaluating their purchases a little more thoroughly and only buying necessities. Just a few years ago, the percentage of credit card users was continually growing, however, due to an increase in fees and the economy, the percentage of users has experienced a drastic drop off. While the percentage of credit card users decline, prepaid debit card companies like NetSpend Corporation are becoming fiercely competitive as an alternate option to spend money and manage finances.

According to the Federal Reserve, “consumer credit card spending suffered its biggest decline in more than 30 years in February 2009.” Their report further concluded that, “revolving credit declined by 9.17 percent which is the biggest drop since January 1978.”At a time in the economy when consumers are tightening their belts and being laid off, purchasing items on credit has lost a lot of its appeal. Dennis Moroney, a research director from TowerGroup, confirms that consumers’ spending habits have drastically changed stating that “people are fearful” and “you don’t see them in the shopping center buying big screen TVs.” Instead, they are likely to be saving money and paying off any loans accruing interest in order to stay financially strong in this recession.

Peoples’ spending habits aren’t the only thing changing either. Credit card companies are lowering their limits and enforcing stricter rules. In anticipation of the CARD credit card reform act and according to an article recently published by the Consumerist, some credit card companies have begun to reduce grace periods, cut credit lines, increase fees on balance transfers to 5%, and increase minimum payments and APR. These are big changes a lot of credit card users may not even be aware of yet, and after they are, they may consider changing their means of spending on an even greater scale.

Of course, as credit cards users are declining, people are choosing a better way to spend and manage their finances with prepaid debit cards provided by companies like NetSpend. Due to massive loans and credit card debt, many people have ruined their credit – prepaid cards offer them another option, as no credit checks or bank accounts are necessary in order to obtain one. NetSpend’s prepaid cards also give users the added benefits of being able to make purchases worldwide and online, allow them to be in control of their money with no fees and no debt, and allow them added security as carrying prepaid cards are much safer than carrying cash.

It’s plain to see that in this economy people are focusing on how to better manage their finances as consumers lose their jobs, deplete their unemployment, and use up their savings. The overwhelming amount of debt accrued by many credit card users wasn’t an issue until people realized they may not be able to make their payments after unexpected losses in their personal income. Stay out of debt and start managing your finances better with a NetSpend prepaid debit card today!

NetSpend.com’s Prepaid Debit Cards as an Alternative to Bank Accounts

Many people would assume that having a prepaid debit card is similar to having a bank account with a debit card tied to it. However, these finance options are vastly different. While the majority of the population does have a bank account, few people realize all the added benefits of using a prepaid card instead. NetSpend’s prepaid debit cards provide worldwide financial access and user control. These benefits and others will be discussed more in-depth below.

One thing that can make opening a bank account difficult are the high minimums required to open a new account. This is not so with Net Spend’s prepaid debit cards. Deposit amounts can be chosen by the user and there is no minimum balance to worry about. Additionally, selecting which type of bank account is right for you can be difficult as well. There are various account options all with their own fine print, not to mention the fact that there are often strict rules about usage depending on the type of account you choose. Net Spend’s prepaid debit cards avoid all of this, and make managing and accessing your money easy and convenient.

Using a NetSpend prepaid debit card is a great alternative to a bank account as they allow users to withdraw cash at ATMs and make purchases worldwide. Also, these prepaid debit cards allow users to view spending and add additional funds online at NetSpend.com, making the process simple and quick. One of the biggest advantages of a Net Spend prepaid debit card over a bank account is the inability to overdraft and incur fees. Spending is entirely defined by the amount loaded on the card. This allows you to have complete control over your spending and put your own personal limits on it.

Direct deposit is another common feature of bank accounts where paychecks can be automatically deposited each month. NetSpend’s prepaid cards also have this option available, which gives users access to their funds immediately. Another option both bank accounts and prepaid cards have in common are transfers between accounts. Just as you can transfer money between bank accounts, you can transfer it between NetSpend prepaid cards. Users of these prepaid cards also have the option to put some of their money into a savings account, just as they could with a bank. These savings accounts offer a 5% annual percentage yield interest rate, a comparable rate to those available with a typical bank savings account.

A NetSpend prepaid debit card has many of the conveniences of a traditional bank account without any of the hassles or fees. Prepaid cards are a great way to have easy and safe access to your money.