People take part in emotional spending for many different reasons. You might have had a bad day at work, a fight with your loved one, and so on. You might even be spending because you are so stressed out about the amount of credit card debt you have racked up.
While a certain level of emotional spending may be acceptable in some cases, it can quickly get out of hand and turn into a problem.
The other day I was watching someone on TV who said that they had tens of thousands of dollars worth of credit card debt due to emotional spending.
This spending may have relieved their stress for a few seconds, but then the reality would always quickly set in that money was a big stressor of theirs as well.
I’ve mentioned this statistic before, but it is one that will hopefully open your eyes. According to NerdWallet, the average household in the United States (who has debt) has an average credit card debt of $15,611. That is an increase of 2.26% from the amount of average credit card debt in a household in the same period in 2013.
While some of this credit card debt may be due to someone having higher expenses than the income they are bringing in, I’m sure that some of it is also due to emotional spending.
Below are my tips to finally kick your emotional spending habit. [Read more…]