"A commitment device is a choice that an individual makes in the present which restricts his own set of choices in the future, often as a means of controlling future impulsive behavior and limiting choices to those that reflect long-term goals."
A debt consolidation loan can be really beneficial if I am committed to getting out of debt. It can be incredibly destructive if I just think I am committed to getting out of debt, secretly opening up additional lines of credit and continuing to spend money I don't have.
Putting a commitment device in place when I actually have no interest in following through just ends up being an incredible annoyance and inconvenience.
A debt consolidation loan can be really beneficial if I am committed to getting out of debt. It can be incredibly destructive if I just think I am committed to getting out of debt, secretly opening up additional lines of credit and continuing to spend money I don't have.
Putting a commitment device in place when I actually have no interest in following through just ends up being an incredible annoyance and inconvenience.