A customer store for a Costco store in San Francisco.
Justin Sullivan | Getty Images
Sweep the floor with us tariff Effective, more Americans are Worried Regarding the cost of goods and the possibility of further price increase in the coming months.
These concerns can cause some consumers to spend more time than they otherwise do.
By then, 19% of adults indicated they wereDoom Expenditureor based on fear and anxiety-driven impulse purchases for the future, according to CreditCards.com
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President Donald Trump He said earlier on Thursday 25% tariff About from Canada and Mexico It will begin on March 4.
“Now say how President Trump’s new tariffs on consumer spending are exactly what it says,” said John Egan, a personal finance expert at CreditCards.com. “However, they are likely to cause some consumers to rethink their buying habits, especially when it comes to large purchases.”
Worry about tariffs driving more purchases
To this end, 28% of Americans have made large purchases, such as household appliances or Home decoration supply. Another 22% have also started in stock According to CreditCards.com, certain items include non-rotten food, toilet paper and over-the-counter medications.
But these habits also push 34% of credit card borrowers to Take on more debts The report also found this year. CreditCards.com conducted a survey of 2,000 adults in February.
Disadvantages of doom spending
“One of the downsides of doom spending is that it can push you beyond and damage your budget,” Egan said. “In addition, doom spending can cause you to pile up credit card debt, which can leave you in financial loopholes due to interest and expenses.”
As Credit card debt Maximum amount $1.21 trillionExperts say it is more important to focus on paying down card debts rather than spending more money.
“Anyone who tells you knows what the next few months will affect the economy,” said Matt Schulz, chief credit analyst at Lendingtree.
“It’s easy to feel powerless due to so much uncertainty, but there are so many things you can do to control your financial situation,” Schultz said.
“The two best things you can do are knocking down your high interest debt and building an emergency fund so that you can do it,” he said. “Both are easier said than done, but both will make you better handle any situation.”
