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Credit cards are used widely across the globe, and most adults in the United Kingdom have credit card debts. According to latest surveys on personal debt, each household now has around ?40,000. Certainly, this does not mean that each and every household carries that level in debt, yet indeed the amount is steep. Credit cards are a large part of a normal person’s debt although they are getting more difficult to access.

Since the financial downturn and the new approach by the authorities to sort out Britain’s debts, financial institutions are forced to adhere to much tougher rules regarding lending and other forms of credit. The last leadership is often blamed for the severe situation in the country, with economic problems similar to Greece and Portugal.

The question remains, is it sensible for a person to take a new credit card when they know that there is an existing debt problem to settle? In truth, credit cards are massively importantfor many aspects of everyday life: important purchases such as cars and property are only possible with the aid of plastic money. Many internet companies solely accept credit cards, as do hotels. Lots of merchants do not even take debit cards – so what other options are there for consumers?

Luckily there are loads of types of credit cards, ranging from prepaid money cards to luxury cards and corporate cards. The choice is massive, so most consumers are catered for. For instance, a borrower who has problems being accepted for a loan or other personal credit product at a high street bank may now apply for a low credit credit card. This type of card usually has a small credit limit, but rewards the card user with more purchase power and in many cases there are extra features like a credit rebuilder. This is created to assist the card user to rebuild their credit status, although the risk of further debts is always present.

Prepay cards are more and more popular in the UK, and offer the chance to pay online and around the world with what looks like a regular credit card. They are even provided by one of the main credit card companies like Visa. However, rather than offer the card holder a borrowing facility, the card can only be pre-loaded with their own money. Once the funds are used up, it is up to the card user to re-load the card with further funds. The main advantage of this is that the card holder does not have to fear ending up debt, as it is impossible to take credit using the card. On the flipside of the coin, there are one or two minor sides. For instance, the majority of prepaid cards do have some charges like purchase fees or monthly administration fees. These are generally paid with funds on the card.