Guiding You Through Your Important Legal Needs

Overspending contributes to credit card debt

On Behalf of | Jan 8, 2020 | Credit Card Debt

Overspending is not uncommon, but that does not mean it is harmless. Even spending a little bit extra here and there can quickly build up, leaving people with more credit card debt than they can handle. Even Pennsylvania consumers who budget struggle to get their spending under control.

Research from Slickdeals found that 74% of consumers create budgets. But creating budgets is not helpful if nobody sticks to them. That same research shows that 79% of people with budgets still overspend, and not by trivial amounts either. On average, people spend $143 more per week than they budgeted. This adds up to an extra $7,400 a year.

Part of the problem is that it is relatively easy to overspend. In a survey that asked 2,000 adults about their weekly budget and spending habits, online shopping surfaced as the number one cause of overspending. After all, it is much easier to click and order an item than it is to physically travel to a store for the same product. Adults also tend to spend more than budgeted on groceries and subscription services.

Even the most well-intentioned consumer might not realize he or she is overspending until it is too late. Since overspending accounts for purchases made outside a planned budget, those who do not have the extra funds on hand may end up using credit cards. Although it is easy to accumulate more and more credit card debt, paying it all off is much harder. This is why bankruptcy can be such a helpful financial tool for Pennsylvania residents who are struggling with debt.