Without a doubt, the pandemic has changed the way we spend money.
“Consumers abandoned entrenched shopping habits and kicked e-commerce into hyperdrive,” according to a McKinsey & Company analysis.
Americans are spending more on clothing, travel and experiences, the report also says, and are now conditioned “to believe they can get what they want, when they want it.”
But this also makes shoppers more susceptible to impulse buying.
Another recent one report by online lender SoFi found that 56% of consumers said more than half of their online purchases are spontaneous, largely driven by post-Covid changing habits and the rise of buy now, pay then, which has increased in popularity along with the general increase. in online shopping.
Various studies show that BNPL has played a role encouraging consumers to spend more than they can afford on impulse purchases.
According to a LendingTree report, nearly half of buyers said they wouldn’t have made the same purchase if they didn’t have the option of financing.
Sites like TikTok, Instagram and Facebook are also fueling impulse buying.
quick online shopping
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About half of social media users have made a purchase driven by something they saw in their feed, Newly found Bankrate. In SoFi’s survey, up to three-quarters of consumers said they bought something they saw on social media.
It’s no longer just about the appeal of celebrities like the Kardashians – seeing influencers and even friends, posting at restaurants, on vacation or shopping creates a ‘keeping up with the Jones’ mentality that’s hard to hold out.
Nearly 40 percent 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, according to a separate Credit Karma report.
Two friends in cotton candy taking pictures against the ferris wheel
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The increase in spending through social media platforms has also led to an increase in shopping although it is not completely sober.
With more consumers online around the clock, more than half of adults, or 53 percent, admit to shopping while intoxicated, SoFi said.
Most popular post-cocktail purchase: Clothing, based on social media posts about boozy online shopping. Amazon was by far the most mentioned retailer.
Buyer’s remorse is not new. However, under these conditions, it is more widespread than ever.
According to DebtHammer.org survey.
According to Bankrate’s report, 64% of shoppers said they have regretted at least one purchase made because of social media.
And when it comes to binge shopping, 65% of respondents said they forgot to order an item until it arrived at the door, according to SoFi.
Meanwhile, total credit card debt has climbed back to $890 billion, just ahead of a record high in 2019. Allen Amadin, president and CEO of American Consumer Credit Counseling, offers these tips for curbing spending and pay the debt