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09-28-2015, 07:53 AM #1
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.
09-30-2015, 08:11 AM #2
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.
10-05-2015, 07:38 AM #3
Me neither. I use them more or less for online purchases.
10-05-2015, 11:17 AM #4
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.
10-14-2015, 09:08 AM #5
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.
10-14-2015, 02:12 PM #6
Thanks for the tip and the link!
11-30-2015, 08:30 PM #7
I guess that group might be using it for more security than a credit card at small convenience stores or miscellaneous purchases.