Overspending has become a norm over the festive season, so much so, that many of us tend to make ambitious financial plans for the new year to bridge the gap. Between splurging on exciting holidays and buying several presents for the children, we forget that we may still need some money saved up to make it through the next few months. Especially with the school year on its way and any of those pesky unexpected costs that seem to arise. Instead of looking at our current spending habits, we focus on implementing new ways to try and save money. Grimly, we try to stick to a budget and consider meal prepping for the week ahead, so we aren’t tempted into buying take-out. But these can seem dismal when it comes to the middle of the month, and you realise you are out of money and need to take out more payday loans to get you to next week.

Before setting an unrealistic budget, you may have to consider the effects of your spending habits. To help you get started, we have compiled a few reasons where we have found people tend to overspend the most.

1) Using Your Credit Card Too Often 

With instant access to more money, many forget that the money isn’t really theirs and swipe away without a second thought. It’s convenient and quick, which is why we often just use our credit cards. And while it is the easier option for payment, there is still mounting interest rates and fees that you need to consider. Unfortunately, the only way to tackle this is to start decreasing your limit and actively working towards paying off your credit card for good.

2) Indulging In Retail Therapy Frequently 

Life can be stressful, and sometimes people find that shopping can be a way for them to relax for a few hours. It’s something you may look forward to every once in a while, but that can be the cause of your piling debt too. Look for other avenues to destress such as a hobby or meeting with a social group rather than spending your money carelessly.

3) Making Impulse Buying A Norm 

Impulse buying is never a smart financial decision because it can lead to more debt than you ever anticipated. It’s all the purchases you make without planning too. Whether it’s at the local grocer or a luxury store, these are costs you never accounted for. Plan every purchase you make, as this is the only way to ensure you stay out of debt.

Be it instant gratification that you are after or you shop emotionally, debt can be an additional stress factor that can cause havoc to the quality of your life. At Acorn Finance, we believe in providing financial solutions to help get you out of tight spots when you need it the most, with payday loans. We also believe that everyone should strive towards better financial decisions, regardless of their current bank balance – and we hope that you have found this article useful. For more information on our loan application process, loan options and fees, speak to us today.