Impulse Buying: How to Avoid the Debt Cycle

What is happening?

According to G1, Brazil is facing an alarming increase in indebtedness, especially driven by online and installment purchases. Many people are making impulse purchases, lured by promotions and credit facilities offered by apps. The situation becomes critical when we consider that 80% of virtual purchases in Brazil are made via mobile phone, in a market that generates R$ 258 billion annually.

Psychologist Tatiana Filomensky highlights that the ease of shopping and emotional triggers increase the risk of indebtedness. Compulsive shopping, officially recognized, affects about 8% of the global population, with many in Brazil facing debts that exceed their repayment capacities.

Why does this matter?

Indebtedness is not just a financial issue but also an emotional one. Many people, like influencer Camila Nunes, report that shopping compulsion can lead to strained relationships and feelings of loneliness. As credit card interest rates hover around 428.3% per year, the actual cost of purchases can be devastating.

Furthermore, most debtors in Brazil have accumulated debts through credit cards, store credit, and personal loans. This situation is concerning as 80.4% of families were indebted just in March this year. This means that many Brazilians are living in a vicious cycle of purchasing and debt that feeds itself.

What changes for you?

If you earn a salary and pay bills, it's crucial to understand how impulsive consumption can impact your personal finances. Imagine you earn R$ 3,000 per month and decide to split a R$ 1,500 purchase into 12 installments. While the installment may seem affordable, the total cost, considering interest, could raise your monthly spending to R$ 1,800, compromising 60% of your salary.

This type of financial decision can quickly lead you to a state of alert, where you start using the credit card's revolving credit to cover expenses, which becomes a trap. To keep your budget balanced, it's essential to follow the 50/30/20 method, where 50% of your income goes to needs, 30% to wants, and 20% to savings.

What to do?

• Set a monthly limit: Define how much you can spend on impulse buys and stick to that amount.
• Avoid impulse purchases: Give yourself time between the desire to buy and the action. A day or a week can help clear your mind.
• Disconnect: Reduce your time on social media and shopping apps. Less exposure to promotions may mean less temptation.
• Use your shopping list: Before shopping, make a list and stick to it. This helps focus on what you really need.
• Educate yourself financially: Knowledge is power. Learn more about personal finance and how credit works.

Connection to financial organization

ADXIS can help you organize your personal finances and efficiently follow the 50/30/20 method. With a clear plan, you can avoid the traps of impulsive consumption and keep your financial health in check. Track your progress and adjust your planning as needed.

The important thing is not to let the cycle of indebtedness control your life. The conscious use of credit and discipline in budgeting are essential to ensure a healthier financial future.