With consumers still deleveraging from the financial crisis, many have shunned credit cards in favor of debit cards. Many consumers took out too much debt and were forced to pay sky high interest rates on their outstanding credit card balances.

Additionally, many banks are still hesitant to issue credit. Banks have been reluctant to issue loans or any other type of money to consumers. Banks, which were hit hard by the financial crisis, have been trying to be more selective about who they lend to. As a result, getting approved for a credit card has become a much tedious process.

Some consumers have resulted to payday loans. Payday loans are small loans, which are expected to be paid back in a short time period. The one big minus to payday loans, is there enormous interest rates. Payday loans are less regulated than credit cards, and charge annual interest rates of over 100%.

Prepaid credit cards is becoming a popular alternative for several reasons.

Prepaid credit cards allow consumers to pay instantly and safely, while not paying high fees.

Many prepaid credit cards are issued by large credit card companies such as Mastercard. If the merchant expects credit cards, they likely will accept prepaid credit cards.

Additionally, we always stress to be frugal with your money. If you cant afford it dont buy it. I know many people who shun credit cards, because they end up spending more money then they can afford. Worse than this, is spending more than you can afford and being forced to pay large interest rates for late payments.

Prepaid credit cards only allow consumers to purchase the amount of money contained in their account. It is a form of a debit card, but provides much more security normally. If you lose a debit card or check, you can have your bank account wiped out. Many pre-paid credit cards offer security similar to credit cards, where you are not held liable if there is fraudulent activity.

It is always important to think about personal finance, spending and having a healthy (or zero debt load). Some consumers might want to consider a prepaid credit card as an option, due to the reasons mentioned above.