The program from MasterCard and CitiBank will allow consumers to set monthly budgets for a number of different categories, from shopping to dining out. According to a report from Denver television station KNCN, the "In Control" accounts will shut down for a specific category once the limit is reached for a given month.
For example, if the cardholder only wants to rack up $50 in credit card debt at restaurants, the card will be declined if they try to use it beyond that, the report said. Consumers can check the status of their spending by category online.
However, one financial planner told the station that this strategy alone will not cure bad habits. Beyond simply setting budgets on credit card debt for specific types of purchases, consumers need to learn better practices.
In recent months, consumers have been conscious of their finances, reining in spending and paying off more credit card debt while also putting money into their savings.