Practicing financial responsibility is an important consideration because it affects many other facets of our lives. Becoming educated about beneficial monetary habits can help limit the stress that often manifests itself in terms of mental or physical health when we are bombarded with debt or other financial concerns. Proper money management can alleviate points of conflict in marriages and relationships, and can allow for a more robust social life because the extras we all enjoy are budgeted for. We are better able to appreciate that shopping trip, dinner out, or vacation when we know we have properly planned and saved for these types of expenditures.

While there are many aspects of successful financial responsibility, one of these can include the use of prepaid debit cards to gain control of our finances. As one of the fastest growing forms of payment, Americans are finding that using prepaid debit cards can help control spending, limit losses when traveling, keep personal information safe, offer an alternative to the traditional banking system, provide spending power without having to carry cash, and even help kids learn how money works.

Limit Spending to Practice Better Money Management

While credit cards allow people to borrow money from a lender, prepaid debit cards can offer built-in spending controls because the card is only loaded with a pre-limited amount. Prepaid debit cards are accepted where major credit cards are, so traveling abroad is not a concern. Using a prepaid debit card can also give parents an opportunity to teach their children about managing money in an easy and practical way.

Using Prepaid Debit Cards to Receive Loan Funds

Another use for prepaid debit cards is in the case of emergency expenses. While an important characteristic of healthy money management is having access to emergency funds that allow for unforeseen circumstances, there may be certain situations in which an emergency fund is not enough to cover expenses. Whether it is a medical or educational expense, or an auto repair that needs to be handled immediately, funds from short term loans can be deposited on to a prepaid debit card that can then be used to pay for unexpected needs.

Whether applying online or in person, approved loan funds can be deposited into the loan account and as soon as the prepaid debit card from the lender is received, fund can be accessed immediately via withdrawal from an ATM. Alternatively, transactions can be paid for directly from the prepaid card at most merchants and vendors that accept debit and credit cards. It is important to note that these loans may incur comparatively higher fees coupled with relatively condensed repayment periods. Taking out payday loans or other loans with a prepaid debit card should always be done responsibly, with consideration for funds needed and the ability to make payments in accordance with the agreed upon repayment schedule.

Sensible money management is an essential component of proper personal finance. The importance of this category of responsibility in one’s life can hardly be overstated. While prepaid debit cards have their benefits and limitations, they can also serve a good purpose in certain financial situations. Whether funds are needed for an emergency loan or controlled spending habits need to be practiced and learned, prepaid debit cards do not need to be discounted as a useful form of payment.

The content on this site is for informational purposes only and is not professional financial advice. Blue Trust Loans does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.

Hummingbird Funds, LLC is a sovereign enterprise, an economic development arm and instrumentality of, and wholly-owned and controlled by, the Lac Courte Oreilles Band of Lake Superior Chippewa Indians (the “Tribe”), a federally-recognized sovereign American Indian Tribe. This means that the Hummingbird Funds’ installment loan products are provided by a sovereign government and the proceeds of our business fund governmental services for Tribe citizens. This also means that Hummingbird Funds is not subject to suit or service of process. Rather, Hummingbird Funds is regulated by the Tribe. If you do business with Hummingbird Funds, your potential forums for dispute resolution will be limited to those available under Tribal law and your loan agreement. As more specifically set forth in Hummingbird Funds’ contracts, these forums include informal, but affordable and efficient Tribal dispute resolution, or individual arbitration before a neutral arbitrator. Otherwise, Hummingbird Funds is not subject to suit or service of process. Neither Hummingbird Funds nor the Tribe has waived its sovereign immunity in connection with any claims relative to use of this mobile site. If you are not comfortable doing business with a sovereign instrumentality that cannot be sued in court, you should discontinue use of this website.