CENTER FOR RESPONSIBLE LENDING – Super stars often take up a good cause to shed light on issues that warrant more attention.
However, just because a celebrity promotes it doesn’t mean it’s good for you.
Justin Bieber, with 30 million Twitter fans and 50 million Facebook followers, has signed on with Bill My Parents, a teen-oriented financial company, to launch a new prepaid debit card.
He follows in the footsteps of other celebs promoting prepaid cards include Suze Orman, Russell Simmons, Magic Johnson, and the Kardashians – for better or for worse.
The card isn’t online just yet and it may not fly, if it gets enough bad press.
The Bieber card will carry a monthly fee of $3.95, a $1.50 per-ATM-withdrawal fee, a $3 inactivity fee (after 90 days) and a $7.95 lost-card-replacement fee.
From a web site that’s supposed to teach kids money smarts, that’s a lot of downloaded Bieber tunes going to fees.
CardHub.com says the fees are steep compared to other prepaids, so shop around.
Better yet, SmartCredit.com says a conventional debit card (attached to a checking or savings account) from a bank or credit union that doesn’t charge an arm and a leg in fees is an even better deal than a prepaid.
And that’s the name of that tune.
DeadlineNews.Com contributed to this story.