Articles about Credit Cards

Compulsive Shoppers Affected by Credit Crunch

According to the survey held by Stanford University School of Medicine, about 17 million of U.S. consumers are compulsive shoppers. It means that one in 20 cannot control the urge to shop. And the consequences of shopaholism can be really serious - people lose their jobs, families, and their finances as well. During these uncertain economic times even responsible buyers are tightening their belts. And what about compulsive shoppers who constantly have problems with credit cards and money management. The question is, will financial crisis change spending habits of compulsive shoppers for the better or worse?

Shopaholism is not a modern-day disease. There were many famous compulsive shoppers in history. Take for example, Marie Antoinette or Princess Diana. The addictions of famous shopaholics ranged from designer clothes and shoes to art and antiques. At least, they had enough funds to shop till they dropped. Not every compulsive shopper can afford spending much without burning a hole in the wallet.

Actually, compulsive buying occurs all along social classes. No matter whether you're super rich or you can hardly make both ends meet, compulsive shopping is omnipresent. Interestingly, but contrary to popular belief, this addiction is equally distributed between males and females.

Weird as it may sound, but these harsh economic times can really influence shopaholics. The slow economy can help compulsive shoppers see things in a different light. When most customers face financial troubles, shopaholics feel more like a part of the community. Some of them even feel guilty about purchasing big-ticket items amid the bad economy when everybody is struggling to make both ends meet. Solvent shopaholics feel sorry for people, who may lose everything, and they start changing their spending habits for the better, i.e. they spend more rationally.

Financial crisis may have the opposite effect as well. Now that retailers slash their prices, it's really hard to resist the temptation of buying more things for less. Compulsive shoppers can hardly stop themselves when it comes to good bargains. But all in all, bad economy has a positive rather than negative effect upon shopaholics.

There can be many reasons of compulsive shopping. One of them is conspicuous consumption that is encouraged in the society. Back in the old days, one can easily apply for credit. All that was needed is just to answer some questions and a high limit credit card was yours.

Not the same thing nowadays. Banks and credit companies increasingly slashed spending limits on most credit accounts. Even borrowers with good lending history who get access to best-buy low APR credit offers, face problems they've never had before, not to speak about those people who have to file bankruptcy because of their massive debts. Reduced spending limits and stricter terms make holders manage their plastics more carefully.

These days one should know where his/her money actually goes and compulsive shopping gets transformed into rational shopping behavior. Meaning, the shopper should buy only the items he or she really needs. With credit limits being cut, it becomes more difficult to waste money on designer clothes, and brand-new gadgets. Simplicity comes in fashion and it may be the right time to reconsider your buying behavior and spending habits.

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