Credit Cards Are Encouraging You to Overspend

Written By Melissa Cook
Apr 20, 2018


Credit Cards Encourage Overspending. If you think that a credit card can’t “force” you to overspend, you’re both right and wrong. People are ultimately responsible for the choices they make; that’s true. But decades of research have found that people aren’t always completely in control when using cards instead of cash.

Multiple studies show that the pieces of plastic in our wallets have the power to push us beyond our spending limits — sometimes literally. There’s documented proof, for instance, that the mere exposure to credit card logos can nudge consumers to pull out their plastic and spend more compared to when visual stimulation is absent.

If that visual stimulation isn’t enough, the temptation of credit card “rewards” adds an additional psychological tug to help you buy things you don’t need. You might be shocked to discover, for example, that in three months you’ve spent $1,000 more on groceries just to maximize your cash back bonus. Rewards are designed to encourage that type of behavior, and even the most financially disciplined consumers sometimes find them hard to resist.

In addition, simply having the option to pay with credit also increases consumers’ willingness to pay — and even to spend more on the same thing — than if cash were the only choice, according to the findings of an MIT study.

It’s less painful, after all, to hand over a card that will let you temporarily forget how much you’re about to lose than to part with a physical dollar bill. That numbing effect, combined with the ease of swiping a card, can condition people to habitually reach for their cards even when they know they shouldn’t.

If chronic overspending with plastic has led you down a path of endless debt, we can help. Americor Financial Services works directly with our clients to find their best possible option for getting rid of debt.

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Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

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