Credit Card Spending

Unnecessary Spending and Over Using Credit Cards Lines of Credit

Having a credit card in one's wallet can make it easier for any individual to engage in unnecessary spending. Whether one is at the mall and browsing flat-screen television sets or shopping for designer clothing online, all it takes is a couple seconds to make significant purchases. An impulse purchase is easily satisfied when an individual uses credit cards.

Another way in which credit cards can trigger unnecessary spending is by being available to individuals at all times. It is easy to reach for a credit card when a person has a moment of emotional vulnerability. He or she can easily spend hundreds of dollars in cash to attempt to get out of a depression or feel better about one's self. It is not uncommon for individuals to spend money when they want to have a boost of self confidence.

Having credit cards also encourages unnecessary spending, because a person does not feel like he or she is spending "real money." There is no physical handling of cash, so a person may feel like he or she has an unlimited amount of funds to spend. Also, a person does not experience any negative feelings when he or she spends with a credit card. There is a brief moment of pleasure experienced when a person makes a charge on a credit card. Conversely, a person may experience a brief moment of pain when he or she hands over a wad of dollar bills to pay for an item that is not a basic need in life. This pain may actually cause a person to reconsider spending the money on the item and to prolong having it.

Credit cards can truly encourage unnecessary spending and cause a person to exceed his or her monthly budget. It is important for consumers to stay conscious of their spending habits to avoid making too many unnecessary purchases.