If you are the type of person who tends to routinely overspend on purchases or if you’re someone who wants to take control of your spending habits immediately, then a reloadable debit card may just be the ideal solution for your situation.

Reloadable debit cards allow you to have a prepaid amount of cash available anytime in the form of plastic, such as a MasterCard or Visa. You don’t have to have a bank account, you don’t have to have a good credit rating to get one, and you can only spend up to the amount that you have loaded. Banks or issuers normally guarantee approval if you can provide sufficient identification information, such as your driver’s license, birth certificate, or social security number.

The major advantage to reloadable debit cards is that you avoid having to pay interest charges, which can be a major savings over time. You also avoid paying any type of late fees, non-sufficient funds (NSF) fees, annual fees or overdraft fees. Be sure to review the terms of your agreement though, as some issuers may charge any (or all) of the following fees:

• Overdraft Fee: If you accidentally charge more than the available balance, you will be charged an overdraft fee. This could be as high as $30 or more and you will still have to pay the balance of the amount you overspent as well, so be sure to keep a close eye on your spending!

• Lost Fee: If you lose it, you could be charged a fee for a replacement, normally under $10.

• ATM Withdrawal Fee: If you choose to withdraw cash at an ATM, you may be charged a withdrawal fee starting anywhere from $2.50 to $5.00.

• Initial Purchase Fee: One time fee normally under $10.

So how does it work? You have the issuer increase the amount available with money from any number of sources, such as cash or another bank account. The funds are normally available within 30 minutes after the amount has been loaded. Some people choose to have their employer directly deposit their paychecks onto a reloadable debit card, which saves them from having to pay a costly check-cashing fee somewhere else! Keep in mind that some (not all) issuers charge a small fee to do this, so make sure you check the terms of your agreement for the exact amount (if there is one). The information that you will need to provide to your employer is similar to a regular checking account, normally a bank routing number that is used for direct deposits.

Where can you use one? The honest answer is just about anywhere, but it does depend on the logo. If you have a Visa reloadable debit card, it can be used anyplace that Visa is accepted. The same applies for a MasterCard debit card. Major retailers usually accept both types as so do most online stores and bill payment centers.

In these tough economic times, you may want to consider carrying a reloadable debit card. They are a great way to help control overspending, stay within your budget, and save money by avoiding interest charges!