We’re all guilty of indulging in a bit of retail therapy aren’t we?
But 19 million Brits are apparently spending a staggering £26.5 billion on credit cards, all triggered by emotional life events.
Some of these events are positive, like a job promotion. But others include things like break-ups, death of a close friend or family member, or even retirement, according to the report by Asda Money.
And these spending sprees have a long-term impact as well, with more than a third of emotional spenders ending up in financial difficulty. The good news is nearly a quarter later overcame these money worries.
Expensive items bought by ‘emotional spenders’ include cars, holidays, home renovations and even tattoos.
How to handle a credit card
A credit card can be a very useful thing to have, but if used badly it can lead to serious problems.
The first thing to do is get into the habit of paying off your card in full each month. This way you’ll avoid the interest payments.
Don’t just make minimum repayments and make sure you avoid late payment penalties.
Checking your bill every month is important as this means you can spot and query any payments you don’t recognise.
And don’t forget, if you regret a purchase, you have extra protection if it was bought on a credit card, or debit card with chargeback.
How to avoid impulse spending
In the age of online shopping, impulse spending is very difficult to avoid, particularly for those suffering with mental health problems.
While more than a third of people have regretted online impulse buys, this figure jumps to more than 50% of people who have experienced mental health problems, according to the Money and Mental Health Policy Institute.
It’s also important to remember you are not the only one struggling with these problems and the sooner you seek help, the quicker things will get back on track.
But there are ways to tackle the problem.