A new LendingTree study reveals that nearly two-thirds of Americans let their emotions guide their purchases, with many shoppers regretting their decisions afterward.
Whether you call it "emotional spending" or "retail therapy," many Americans admit to shopping based on feelings rather than necessity.
"If you are spending too much too often in reaction to how you're feeling or what's going on in your life, that's not a great sign," said Matt Schulz, LendingTree consumer financial analyst.
The recent LendingTree study shows about 63% of Americans admit their emotions influence their purchases, and nearly three out of four emotional shoppers say it's led them to overspend.
"We saw in our report that not only a lot of people are doing emotional spending, but a lot of people are getting themselves into debt over it and ultimately regretting what they did," Schulz said.
At River Parks 2 News met Samantha Briceno and Camila Meza out for their morning run.
For some shoppers like Samantha, new purchases provide motivation.
"If you get new clothes you tend to want to work out better in our case. It's a motivation to wear the next day. So, for example, this morning I woke up very excited to wear my new top and yeah, here I am running," she said.
Her friend Camila agrees that shopping can be a mood booster.
"If you're sad and you get a new package, you know, delivered to your house, that's always gonna bring up your mood. So that's how I see it," Camila said.
However, the initial excitement can quickly fade.
"I mean, at the moment I feel very hyped, you know, because I'm getting new clothes. Sometimes I regret it after I buy I'm like I should not have bought that," Samantha said.
The study also found that 38% of respondents say economic uncertainty has made them spend more, and 44% report that emotional shopping has negatively impacted their financial well-being.
Nearly half (47%) of consumers engage in retail therapy specifically to improve their mood, with the most common purchases being:
- food (63%)
- clothing and accessories (54%),
- personal care or beauty products (42%).
Buy now, pay later services may be adding to the problem. The survey found 52% of emotional spenders say these payment options have made them more likely to engage in emotional spending, with Gen Z leading at 62%.
If you've accumulated debt from emotional spending, experts recommend several strategies to address it.
When possible:
- transfer credit card balances to a zero percent interest card to pay down debt without additional interest charges
- ask your current card issuer for a lower interest rate.
"It works more often than people believe," Schulz said.
Consumers can also consider consolidating debt into a personal loan with lower interest than a credit card while paying it off.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
Stay in touch with us anytime, anywhere --
- Download our free app for Apple, Android and Kindle devices.
- Sign up for daily newsletters emailed to you
- Like us on Facebook
- Follow us on Instagram
- Watch LIVE 24/7 on YouTube
