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  1. #1
    Registered User Pro Member
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    Prepaid Cards on the Rise by Two Groups

    In a recent study, it was discovered that african-american females and older caucasian men are increasingly using prepaid debt cards to make purchases.

    Pew research uncovered the following about prepaid cardholders:

    - 72% of them use their prepaid cards to avoid overdraft fees
    - 67% use the cards to stay out of debt; and
    - 57% use prepaid cards versus pay check-cashing fees



    They found the demographics to be growing not only from people who earn less than $50,000, age 30- 49, are renters, and don't have a bank account but also those who are homeowners, have bank accounts, age 50- 64, have a four-year degree or higher, and earn $50k - $100k. Furthermore, these groups are choosing prepaid cards for its ease of use, deposits than a bank with its higher fees. It also helps one stay on a budget than overspend.

  2. Prepaid Cards on the Rise by Two Groups
  3. #2
    Registered User Senior Member
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    242
    Those are some interesting statistics and very useful data for comapnies needing to market to certain demographics. I guess I won't be a recipient of those marketing flyers since I am not in either group.

  4. #3
    Registered User Senior Member
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    195
    Me neither. I use them more or less for online purchases.

  5. #4
    Registered User Semi Pro Member
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    269
    It seems to me that prepaid debit cards can act a lot like cash if you are looking to control your spending.

    You have a set limit, so you are more careful about what you spend money on.

    I know that all those little impulse purchases we make with our credit cards add up to a lot over the course of a year. But we can't seem to kick the convenience factor of a card.

    Maybe we should think about prepaid as a way to change the habit.

  6. #5
    Registered User Semi Pro Member
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    327
    Since these are increasing in usage especially during the holiday season. It might be wise to get a card that doesn't have a recurring monthly fee or a ridiculous activation fee.

    Check this thread for that.

  7. #6
    Registered User Semi Pro Member
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    269
    Thanks for the tip and the link!

  8. #7
    Registered User Pro Member
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    555
    I guess that group might be using it for more security than a credit card at small convenience stores or miscellaneous purchases.

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