Using reloadable debit card vs. bank account

[sillywalks]

I am considering using a reloadable debit card for those expenses I was having billed to my CC. As I considered doing this, I thought maybe I should put most of my paycheck on the card to prevent any bank from freezing my account.

Does anyone know if a bank CAN freeze this type of card? I bought a VISA prepaid (GreenDot) from CVS.

Would I be better off using a PayPal debit (which I should be getting soon)? Can PayPal accounts be frozen by creditors/banks?

I could have my entire paycheck deposited onto the prepaid card -- any reason not do to this? The only thing I can think of is being charged for cash withdrawals, but I could get cash back at a store (without a fee, I think). If I put at least $1000 on the card per month, there is no reload fee.

My current bank is Wachovia. I'm considering moving to a community bank, even though I do not have any other accounts with Wachovia/Wells Fargo.

Anyone using this type of card for any reason? I am considering putting money onto various cards (gas card, grocery card, gift card for Amazon, etc.) as a way to budget, too. Kind of like the envelope system, only with cards -- once it's empty, no more spending until the next paycheck.

I know the reloadable cards do not build credit, but I'm not sure how much I need to worry about that right now.

Any thoughts?

[ccsjoe]

I personally do not subscribe to this type of facility as I am fee adverse, but I know many others on this board have found these cards extremely useful and helpful.

I simply switched banks to a non-WF bank (WF is notorious for freezing accounts) and to a bank with which I had no credit with whatsoever (in my case US Bank). I then redirected the direct deposits to our new account. Finally, I set up all our bills as payees on online bill pay and send them their payments monthly as scheduled. Only 2 organizations I allowed access to my account, the IRS and the FTB (CA tax). This way I control how much I pay to whom and when without incurring fees. But that's just my experience and choice.

[btbeme]

Remember - balances on Paypal, prepaid cards, etc can/will be considered as assets, so be sure to disclose them on your filing.

As for a solution, we have banked at Wells Fargo for years, and we had no debt accounts with them. Nothing was frozen - our checking debit card works fine, etc. Paypal is nice in that their debit card has higher daily allowances on it, which come in handy for doing expensive things (car rentals, plane tix, etc) so long as you have the $$$ deposited in Paypal.