Prepaid credit cards are a wonderful idea for children and for those struggling with debt.  Prepaid credit cards work just like a normal debit or credit card, but the limit on the card is what you initially place on the card before it is activated. The limit allows you only to spend what is on the card, and you cannot be charged with fees thereafter or with bill payments each month.  

However, there is a catch to prepaid credit cards.  Each time you initiate a new card, there is an activation fee that applies, usually between $5 and $10 to setup the account.  With that, you will also have to pay additional fees for each time you deposit money on the card.
 
Prepaid credit cards work just as well as any other credit card and can be used anywhere and anytime.  Prepaid credit cards work well for people that are dealing with poor credit and need to use a credit card for bill payments, credit applications, etc., but that have been denied for credit cards and other credit.  However, there have been issues with companies not allowing monthly bill payments with prepaid credit cards, such as automatic monthly bill payments, for fear that there may not be sufficient money in the account at the end of the month.  

Prepaid cards are a wise tool to use for children, teaching them how to balance and account for their own finances.  They also work great for people trying to get back on their feet while struggling with debt and credit issues.