Top up to reduce debt this bank holiday

The banks may be taking a holiday this weekend but many British people will be going on trips away – and finding the money to pay for them.

For those worried about running up credit card debts or sticking to a budget, a top-up card may be useful.

Similar to pay-as-you-go mobile phones, cards are loaded with a predetermined amount of cash that can then be spent in the same way as money on credit or debit cards.

They are not attached to bank or credit card accounts so the limit cannot be exceeded, nor can thieves get access to more money if the card is stolen.

Carl Scheible, managing director of PayPal UK, which launched a top-up card this year, said: "People can ensure that they stick to a tight budget for the duration of their holiday; avoiding the headache of a huge credit card bill when they return."

Top-up cards may be suitable for those with debt problems who are not able to apply for credit cards. Parents who want to teach their children about budgeting may also want to try out the pre-paid option.