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Should you have a prepaid debit card in your wallet?

Prepaid debit cards are growing in popularity. They're not just for people with no credit or bad credit anymore. They've become an alternative to checking accounts for people who are tired of bank fees.

With most prepaid cards, you can't spend more than you loaded onto the card - so you don't have to worry about costly overdraft fees.

"So by nature it teaches you to budget, it teaches you to manage your money wisely," said Curtis Arnold, founder of BestPrepaidDebitCards.com.

Arnold tells me that some of the newer prepaid cards come with all the bells and whistles you'd expect with a checking account.

It's important to watch out for the fees which can really add up with some prepaid cards. Shop wisely and you can find ones with few fees, or no fees, if you make a direct deposit to the card once a month.

Keep in mind: A prepaid card does not help you build a credit history. Of course, neither does a traditional debit card tied to a checking account.

"So they don't have to be the only card in your wallet, but you can use them for specific purposes," Arnold said.

More Info: What you need to know about prepaid cards

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