Until now, credit cards have been both a blessing and a curse for consumers - a blessing because you can use them to buy what you need without cash, and a curse because they make it so easy to buy things you don't need without cash.
But all that could change thanks to inControl, a new program by MasterCard that would allow shoppers to set a monthly credit card limit for particular types of stores or purchases. When your limit is reached, your credit card simply stops working - no overspending allowed. If you've ever had trouble sticking to a budget, this might just be your ticket to financial freedom.
Maybe you have a weakness for dining out. You'd like to set a restaurant budget of $200 a month, but you always seem to go over. With inControl, you'll be forced to honor your spending plan. Are you a sucker for sales at the mall? Give yourself a limit that you can't exceed - no matter how good the deals are. You'll still have the convenience of a credit card - no ATM stops or bounced checks required - but without the total freedom that makes overspending all too easy.
That said, the program still comes with some uncertainties. Will consumers listen to their limits, or will some simply whip out a debit card or run to the ATM for cash when they've maxed out their card? Will banks charge a fee for using the program, since less credit card purchases mean less profit from interest and overspending penalties? Only the future will tell.
Ultimately, the more opportunities consumers have to exert control over their finances, the better. Of course, you don't have to wait for MasterCard's new program to freshen up your finances. Make a budget, keep a close eye on your spending and make sure you can afford to make more than the minimum payment on your credit card bills each month. And if your credit usage ever does get out of control? Consider reining it back in with bankruptcy. Find out if bankruptcy offers the help you need to lower debt and free up more of your paycheck each month when you try a free personal debt analysis courtesy of an Atlanta bankruptcy attorney.
