As travelers get ready to take out holiday loans in order to take their annual vacations, experts are encouraging consumers to think about getting these funds secured in the form of a prepaid card. This will help consumers control their holiday loan spending and reduce the potential for fraud while in another country or area. Many banks are now offering this option for holiday loans in attempt to interest more consumers.
Virgin Money spokesman Grant Bather said: “Everyone needs to keep their spending under control as the credit crunch and soaring inflation take a big bite out of household budgets. Pre-paid cards remove the temptation to run up debt while you’re on holiday as you can only spend the amount that is loaded on your card. They’re a good discipline to get into to avoid the risk of the sun going to your head and burning up your bank balance on holiday.
“And they can be more secure to carry than cash as if you lose the card you can get a replacement sent out. Plus if you really do lose control of your finances relatives or friends can load the card up with emergency cash.”
Related reading: Holiday Loans
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