The same principle that makes credit cards convenient also makes them dangerous. With plastic, there's no amount of cash holding you back from making a purchase. At least, not until now.
MasterCard recently announced a new program that could revolutionize budgeting for those of us prone to retail weakness and other forms of overspending. With inControl, consumers can place monthly credit limits on certain kinds of stores or purchases. Once the limit is reached, your card stops working - and, in theory, you start saving.
Let's say you have a bad habit of spending too much at department stores. When willpower alone isn't enough to keep you away from the clothing racks, you can set a monthly budget - after you spend, say, $150, your card will simply shut down. Or maybe all those Starbucks runs are adding up. How about limiting your coffee shop budget to $20 a month?
Of course, there are some kinks to be worked out. The program still depends on self-discipline, and some customers might simply run to the ATM or whip out their debit card when their limit is reached. Banks might want to tack on fees to the program, since it could mean less bounced checks or credit card interest - in other words, less of our mistakes for them to profit from.
But logistics aside, anything that gives consumers more power over their finances is a good idea in my book. That said, you can take back control over your finances anytime by simply summoning the self-control to stick to a budget. And if you just can't do it alone - or if overspending in the past has left you with a nasty debt burden - know when to get help. Bankruptcy can lower debt, protect your assets and help you start over. Learn more when you try a free one-on-one debt analysis with a Chicago bankruptcy attorney.
