Certainly, the pandemic has changed the way people spend money.
“Consumers have abandoned their ingrained shopping habits, propelling e-commerce into hyperdrive,” according to a analysis by McKinsey & Company.
Americans are spending more on clothes, travel and experiences, the report also says, and are now conditioned “to believe they can get what they want, when they want it.”
But it also makes shoppers more susceptible to impulse purchases.
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 the now, pay later, which has exploded in popularity with the general boom in online shopping.
Several studies show that the BNPL played a role in encourage consumers to spend more than they can afford on impulse purchases.
According to a report by LendingTree, nearly half of buyers said they wouldn’t have made the same purchase if they hadn’t had the option to finance.
Sites like TikTok, Instagram and Facebook are also fueling impulse purchases.
fast online shopping
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About half of social media users made an impulse purchase motivated by something they saw on their feed, Bankrate recently found. In SoFi’s survey, up to three-quarters of consumers said they bought something they saw on social media.
It’s no longer just the appeal of celebrities like the Kardashians: Seeing influencers and even friends, posting in restaurants, on vacation, or shopping creates a “Keeping up with the Joneses” mentality that’s hard to resist. resist.
Nearly 40% of young adults said they spent more money on experiences than on necessities like paying bills, in part because they wanted to share it on social media, according to a separate report from Credit. Karma.
Two friends with cotton candy taking pictures against ferris wheel
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The surge in spending via social media platforms has also led to increased shopping without being completely sober.
With more shoppers online around the clock, more than half of adults, or 53%, admit to shopping while intoxicated, SoFi said.
Most popular post-cocktail purchase: clothes, according to social media posts about drunk online shopping. Amazon was by far the most cited retailer.
Buyer’s remorse is nothing new. However, under these conditions, it is more ubiquitous than ever.
Among those who used installment payment plans, 22% regret their decision, according to a investigation by DebtHammer.org.
According to Bankrate’s report, 64% of shoppers said they regretted at least one purchase made because of social media.
And when it comes to drunk shopping, 65% of respondents said they forgot to order an item until it got to the door, according to SoFi.
Meanwhile, total credit card debt is down to $890 billion, just shy of a 2019 record. Allen Amadin, president and CEO of American Consumer Credit Counseling, offers these tips for cutting spending and repay the debt.