Startup Grind
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Startup Grind

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Why do so many consumers struggle to control their spending habits?

These days, there is a focus on consuming more. Portion sizes are a great analogy.

Economic incentives that encourage consumers to spend more

Companies know how consumers’ minds work, and they are excellent at figuring out the best ways to increase consumer spending. In fact, there are three main economic incentives that brands use to entice consumers to spend more money.

How can virtual cards help individuals control their spending to decrease debt?

In a world where so many things can be done online, virtual cards can help those who want to control their spending. How do virtual cards achieve this? The answer is simple: spending limits.

With a virtual card like Privacy, consumers can set a limit on how much they spend with different retailers, streaming services, and online merchants. This feature can help prevent online shoppers from overconsuming because the limit forces them to stop after a certain point. This benefit also reduces unnecessary purchases and impulse buying because consumers know they only have a finite amount to spend with a particular merchant.

If consumers want to spend more, of course, Privacy allows them to increase their spending limit, but that adds another step for consumers, as they have to go into their account and raise it themselves. This small step slightly increases the friction throughout the buyer’s journey, which is often enough for an individual to second-guess their decision to spend more money and decide to stick to their budget.

How can spending limits help consumers control their finances?

Spending limits offer the obvious benefit: They limit how much a consumer can spend, thus preventing the consumer from spending more than they need. But spending limits can also provide other uses.

Decrease debt by reducing overconsumption

It is all too easy for consumers to fall into the overspending trap. They can buy something with the click of a button, which can lead to unnecessary purchases and impulse buying.




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