According to Gail Cunningham, spokesperson for the National Foundation for Credit Counseling, we live in a credit-dominated society. "Without a checking or savings account," she says, "it's difficult to cash payroll, Social Security and unemployment checks; you need a credit or debit card to shop online, book a flight or rent a car; and you may be forced to carry large amounts of cash to pay bills."

One increasingly common money management tool for people in this situation is prepaid cards. These cards look and work much like regular debit cards except that instead of funding them through a checking or savings account, you load money on the card by cash, check, funds transfer or direct deposit by an employer or government entity.

Common prepaid card features include:

You don't need a bank account or solid credit rating to obtain one.
They start out with a zero balance until you add money. Purchases or ATM withdrawals will diminish the card's balance until it reaches zero and you discard it (as with gift cards) or you reload the card.
Spending is limited to the amount loaded on the card, so you can't buy more than you have.
Cards can offer "Zero Liability" protection if you promptly report loss, theft or fraudulent charges.
Most allow ATM cash withdrawals and online or phone purchases.
They're safer to carry than large amounts of cash.

Common types of prepaid cards include:

Reloadable cards – to which more money can later be added.
Gift cards – used until their balance is depleted; they're not reloadable.
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