How a pre-paid current account can help you budget
If the rising cost of living is starting to weigh heavily, setting a strict household budget is an important first step towards getting your finances in order. It helps to ensure you always have enough money set aside to cover your outgoings, which prevents debt problems from getting worse.
However, setting a budget and sticking to one are two completely different things. Life throws up many challenges and temptations when it comes to finances, and if you’re working within tight margins it does not take much for things to get out of hand. To help you maintain a budget, a bank account with a pre-paid card can be a useful tool.
Pre-paid current accounts work by splitting your finances into two parts: the account itself deals with your direct debits and standing orders and any funds you need for living expenses, while your disposable income is transferred to the pre-paid Mastercard. This way, whenever you leave the house with your card you can spend your disposable income but no more – meaning you do not go over-budget and leave yourself short.
However, if you do get into debt, seek professional advice as soon as possible; many problems can be resolved easily if they are addressed swiftly.