Prepaid Debit Cards – Pros and Cons


If you find yourself looking into prepaid debit cards, it is most likely not because you have excellent credit and make six figures a year. That is okay though because not everyone is at fault for his or her previous financial problems. Whether you suffered from a shopping problem or you were laid off from work for a year, you want to make sure that you are weighing the pros and cons of the prepaid debit cards before you jump on board.

There will be people who have nothing but good to say about these cards. Then you will have the people who will have nothing but negative things to say about them. What you need to realize is that, like anything else, there are good and bad points to consider. When you take the time to really learn what those points are, you will be able to make the best decision for your financial needs.


If you are determined that you are going to curb your spending, a prepaid debit card might be one of the best ways to go. The reason for this is that you are limited to spending only what is on the card. It is impossible to go over your balance.

You also will not have to worry about tons of NSF fees piling up because you went over by a couple of dollars. Since NSF fees tend to be one of the main reasons some folks do not have a traditional bank account, the prepaid debit card is the perfect solution.

For those who have teenagers, making use of a prepaid debit card is ideal for teaching positive spending habits. Since many teens have not yet developed a full sense of financial responsibility, going with a prepaid card is the safest option.


One of the biggest problems with the prepaid cards is that there are generally a lot of fees that have to be paid. This means that you will pay more for the use of a prepaid card than you would a traditional bankcard. With many card companies, there are monthly fees and loading fees, as well as withdrawal fees that you will have to be aware of at all times. Depending on the card you get and how you use it, you could find yourself spending a good percent of the money loaded on fees alone.

In order to make sure that you are not paying too much in fees, you will have to plan ahead. While this might seem a little stressful, it might do you some good if financial planning really was not your thing in the past.

Make The Best Choice

It is up to you to decide whether prepaid debit cards are the best route to take. Your personal financial needs are your own and only you will be able to know what is best. Make sure that you are reviewing all of the various card options that are available to you. It is also vital to read all of the fine print. Never load your money onto a prepaid card that you are not completely confident with. Doing such can only lead to more financial mistakes.

For help in finding the best prepaid debit card for your needs, you might want to talk to friends and family that use them. You can also do a quick search online to find many reviews. The more you research, the better luck you will have.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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