Card With Monthly Spending Limit

[joedavis]

Hi,

I have been the representative payee for my father for the past 5 years. We are looking at investing a set amount of his monthly income that he receives from private disability. Since much of his financial status is out of sight and out of mind for him, he sometimes spends more than what he should be. I've gone over this many many times and he seems good for a month and then will do it again 2 or 3 months later. What I want to do is set a hard limit for him so that he cannot go over the limit. He has a checking account which we keep a low balance on ($300-500 a month) but when he uses it as a check card he's gone over that and the bank ends up charging him an overdraft fee. Right now he already has a credit card but it has a high limit which we use for specific things such as dental bills or other costly purchases which will be paid out of his savings account later on. So my question is this..

Is there any type of VISA credit card or something similar where you can set a limit, and once that limit has been reached the card will be rejected? An account that provides a monthly allowance and nothing more. Or does anyone have experience with a credit card company providing a card with a low limit? Maybe that is unheard of nowadays with the common theme of many people accumulating enormous amounts of debt..

Much of this can be remedied by him exercising self control over his spending, but I've tried so much and it doesn't seem to work for long. It's not like he goes out and spends a few thousand bucks on meaningless stuff, but it is small spending here and there which seems to add up. It is frustrating that I have to act like the parent for my own father but that's how it is. Any suggestions for enforcing a monthly allowance would be much appreciated. Thanks!

[disneysteve]

You can get a pre-paid VISA card that I think will meet your requirements.

Google Visa Buxx and you'll find it.

[wincrasher]

Maybe your allowance for him is too low and you are investing too much of his income. $500 a month is not alot of spending money, especially if he has alot of free time and can get out of the house on his own. Your dad is an adult and it is his money. You have to balance what is good for him with what he wants/ will make him happy.

[boosami]

1. Most credit card companies will adjust the limit if you call and ask. They may think it's strange to adjust it to a lower amount, but they will generally do it. You can also request that it not be adjusted to go higher in the future.
2. Many CC companies can change your account so most overlimit charges are simply declined, rather than approved with a overlimit fee tacked on. They don't like to do this because it lessens their profits from fees, but a supervisor will probably be able to do it for you.

Gather up your credit card prospects and call the toll free numbers. Ask those questions to a representative before applying. I am pretty sure most will be able to adjust the account accordingly.