Despite recession fears and fueled by ‘revenge spending’, Americans are spending 4 a month on impulse buying

Despite recession fears and fueled by ‘revenge spending’, Americans are spending $314 a month on impulse buying

Pandemic shopping changes fueled impulse buying

Certainly the pandemic has changed the way people spend money.

“Consumers have abandoned ingrained shopping habits and taken e-commerce into overdrive,” according to an analysis by McKinsey & Company.

Americans are spending more on clothes, travel and experiences, the report continued, and are now conditioned “to believe they can get what they want, whenever they want.”

But it also makes buyers more prone to impulse buying.

Another recent report by online lender SoFi found that 56% of consumers said more than half of their online purchases are spontaneous, largely due to changing post-Covid habits and the rise of “buy now, pay later”. What is due to what has exploded in popularity along with it is the overall rise in online shopping.

BNPL, social media and drunk shopping are budget busters

Several studies show that BNPL played a role in this Encouraging consumers to spend more on impulse purchases than they can afford.

According to a report by LendingTree, nearly half of shoppers said they wouldn’t have made the same purchase if they didn’t have a financing option.

Sites like TikTok, Instagram, and Facebook also encourage impulse buying.

fast online shopping

Elena Lalic | Istock | Getty Images

Bankrate recently found that about half of social media users have made an impulse purchase as a result of something they saw on their feed. In the SoFi survey, up to three-quarters of consumers said they bought something they saw on social media.

It’s no longer just the appeal of celebs like the Kardashians: seeing influencers and even friends posting at restaurants, on vacation, or while shopping creates a “keeping up with the Joneses” mentality that’s hard to break .

According to a separate report by Credit Karma, nearly 40% of young adults said they spend more money on experiences than on necessities like paying bills, in part because they want to share it on social media.

Two friends with cotton candy taking photos against ferris wheel

Martin-dm | E+ | Getty Images

The increase in spending via social media platforms has also led to a surge in purchases, albeit not entirely soberly.

With more consumers online 24/7, over half of adults, or 53%, admit they’ve shopped while drunk, according to SoFi.

Most popular post-cocktail purchase: clothes, based on social media posts about drunk online shopping. Amazon was by far the most named retailer.

live with regret

Buyer’s regret is not new. In these conditions, however, it is more ubiquitous than ever.

According to a DebtHammer.org survey, 22% of those who have used installment plans regret their decision.

Based on Bankrate’s report, 64% of shoppers said they regretted at least one purchase because of social media.

And when it comes to drunk shopping, a whopping 65% of respondents said they forgot to order an item by the time it got to their door, according to SoFi.

Meanwhile, total credit card debt has crept back to $890 billion, just below 2019’s record high. Allen Amadin, president and CEO of American Consumer Credit Counseling, offers these tips to curb spending and pay off debt.

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