Brits are splashing the cash left right and centre in a spree dubbed “doom spending.” It involves chasing momentary joy to combat the dismal tide of dire political and economic headlines, experts claim.
The surge of buy now pay later (BNPL) schemes across e-commerce platforms and traditional shops is fuelling rash, guilt-free purchases for those after a quick thrill, according to a leading consumer spending expert.
Meanwhile, social networks are abuzz with influencers peddling the latest styles and lifestyle swag, fanning the flames of a shopping frenzy driven by envy.
David Jinks, head of consumer research at Parcelhero, warns that the fleeting buzz of this doom-spending bender comes with a painful hangover — a heap of debt.
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He said: “Retail therapy is nothing new, but what is causing increasing concern is the growth of doom spending, defined by the international e-commerce analysts ECDB as the self-soothing behaviour of purchasing products, despite personal financial strain, to relieve psychological stress.”
He aded: “The rise of social commerce is fuelling the growth of doom spending. Many of us are in the habit of ‘doomscrolling’ – watching endless negative news on TikTok and other social media sites despite the fact we end up depressed.
“It’s all too easy to then watch influencers marketing products and snap up items we don’t really need as a temporary feel-good fix. It’s a cycle that is then repeated once the rush from that purchase wears away.”
Speaking to the worry of compulsive splurging, Mr Jinks highlighted a recent Credit Karma study indicating that a staggering 43% of millennials and 35% of Gen Zs doom spend to boost their mood, The Express reports.
Mr Jinks warned: “People aren’t just buying non-essential ‘nice to haves’ such as a new pair of trainers. Increasingly, they are also making more expensive purchases such as cars and holidays.
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“The escalating difficulty of obtaining affordable first-time mortgages has caused younger people to give up on their dream of home ownership. Instead, they are splurging their hard-earned savings on something a little more attainable, like a new car or a great experience. It’s tempting, but it’s short-term thinking.”
Mr Jinks cautioned against this worrying trend: “Doom spending is becoming an increasingly easy trap to fall into. Online shopping gives us that buzz with just one click of a button, while staggered payment options from the likes of Klarna and PayPal Credit make it deceptively swift and painless.”
He pointed out: “As a result, there is concern that social commerce targets users who may be particularly susceptible to doom spending.”
Adding to his cautionary tale, Mr Jinks said: “The #TikTokMadeMeBuyIt trend, where many millions of users show off the latest items they have bought via the platform and other sites, reveals just how popular this latest form of retail therapy has become. It also gives a false sense of safety in numbers. Just because many other people are indulging in doom spending doesn’t mean it’s okay.”
Mr Jinks suggests that consumers can take certain measures to manage their spending. These include meticulous financial planning to determine any “spare” income available each month.
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Other strategies involve enabling banking notifications and maintaining a spending journal to keep track of purchases. He pointed out that one effective method people are using to curb doom spending is by physically going to a store and paying with actual cash, rather than using a phone app or card.
“There’s something about spending “real” money that makes us think twice,” he said. Mr Jinks also noted: “In the US, steps have been taken to curb the cycle of doom spending. For example, America is introducing new legislation insisting on simple ‘click to cancel’ subscription requirements and ending regular subscription renewals without active consent from consumers.”
“While US and UK consumers may suffer from similar anxieties, there are many examples of differences between the UK and US in terms of consumer laws.”
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