Are prepaid cards right for you?

Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, and 23-year veteran of the credit counseling industry, says she thinks prepaid cards could be useful budgeting tools for some people.

"I think that consumers really have to know that they have a choice, and if they decide that this is the correct budgeting tool for them; that it meets all of their objectives, such as being able to not carry large amounts of cash with them, to be able to use credit, etc., while controlling their spending, then they've got to know, in the fine print, are there going to be hidden fees that are absolutely going to come back and bite them?" says Cunningham, who says that consumers with limited incomes may find the prepaid card's fees too costly to be truly valuable.

Jennifer Tramontana, director of communications for Network Branded Prepaid Card Association, adds, "Make sure you read all the terms and conditions, just like you should with any credit card or debit card you get. Read them -- make sure you completely understand them. If you have any questions, make sure you ask upfront."