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Emotional spending causes financial trouble for some

On Behalf of | Mar 4, 2017 | Credit Card Debt

People in Davidson may go into credit card debt for a variety of reasons. Some purchases are essential, such as paying to fix a broken car or replacing a household appliance. Others may seem important at the time but in the long run are probably unnecessary. Those such purchases are often driven by emotion. One study found that emotional spending is actually a more widespread problem than most people might think.

According to NerdWallet, 49 percent of people in the United States report spending more than they can afford on something because of their emotional state. For some people, overspending may result from feeling sad, while for others it could be stress-related or out of excitement. It was found that men were more likely to spend out of excitement while women were more likely to spend because of stress. Older people were less likely to cite their emotions as a reason for overspending compared to young adults.

U.S. News & World Report advises that certain warning signs may signal that emotions are behind a purchase. Ironically, being in financial straits may actually drive some people to overspend. Many people also use a shopping spree as a mechanism for coping with tension in their lives.

Another reason some people spend more than they should is because they want to project a similar lifestyle as their friends and family members. Anyone who is struggling financially may want to stop before making any purchases on credit and ask themselves if the short-term satisfaction is worth the long-term monetary ramifications.


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