The Emotional Triggers of Credit Card Debt

I used to always say that shopping was cheaper than a psychiatrist!

Here is a mind blowing statistic: In 2021, Women accounted for 75% of consumer purchases. And in a country such as the US, where spending is a driving force of the economy and the average consumer credit card debt is $6,275, there is an enormous amount of buying power in the hands of women. 

There are several reasons why women purchase more than men; for instance, we are often in charge of the household expenses and day to day shopping or we spend more because of societal pressures regarding appearance and lifestyle. Another reason is the need to manage our emotions through the act of shopping. 

Men, on the other hand, have a more straightforward approach to purchasing goods; they spend money on things they deem are needed or necessary and are much more focused on saving for the future. They are not as vulnerable to credit card debt as women because they see themselves as the providers of money. 

However, when men do buy, it is usually for larger scale purchases such as electronics, houses, or cars. These are more lasting purchases and houses and cars are generally considered assets. On the other hand, women tend to spend the most money on clothing, shoes, and accessories. 

The rate of bankruptcies, because of credit card debt, for women between the ages of 25 and 44 is the highest for any group. Women are more likely to purchase an expensive handbag, shoes, or electronics than to save their money.  

Young women also have more exposure to celebrities and their lifestyles than every before, they try to emulate their lifestyles through their purchases—often leading to more credit card debt.

Another reason women are more likely find themselves in credit card debt, is our emotional connection with money. For women, money often symbolises security or the ability to attain a better lifestyle. It is often difficult for women to separate our emotions from the detached business of money which creates many problems over time. We tend to express our love, goals, and individualism through money, while to the majority of men, money is just money. 

Women assign money with a value that it doesn’t have, the ability to improve our self-esteem or our happiness. These are values that have been adopted in childhood because our parents are more likely to encourage boys to be more entrepreneurial while girls are often subconsciously taught that we should be taken care of financially. 

These influences are the blueprint for a life of financial success or financial disaster. As women, we do not learn how to properly save and invest, therefore, we find ourselves in credit card debt as we don't really know what else to do with our money. 

This is where femvestorsglobal comes in as we can support you exactly where you need it.

Addressing the emotional connections that you have with money and your old stories as to why, is an important step in the process of achieving financial responsibility and a debt free life.