As of the third quarter of 2025, Americans have a total of $1.23 trillion in credit card debt, according to data from the New York Fed.
In recent years, the rising cost of necessities such as rent, groceries and utilities has led some households to turn to credit cards to pay for necessities, choosing to buy now and pay off later.
But some people simply spend more than their means. Nearly 30% of Americans report overspending on luxuries and comforts, according to a 2023 study from financial services firm Empower.
Jeryn Vickery, a certified financial therapist who specializes in consumer psychology, told CNBC’s “Make It” that when individuals try to curb their impulsive spending, they often end up with either confusion or rigidity. Between these extremes, she says, “adaptability is paramount” to developing healthy spending habits.
When you’re confused, she says, it can seem like you’re overspending, thinking, “I’m done with it, so I think I’m going to max it out.” Rigidity, on the other hand, may be seen as enforcing a strict budget with no allowance for discretionary spending.
“Overwhelm and poor mental health often occur when people move back and forth between the two ends of the spectrum,” Vickery says.
“In the middle of that is adaptability, because we need both rigor and disruption,” she added. “To really find balance when it comes to our consumption, we need to be able to move back and forth between the two.”
How adaptability helps prevent waste
A strict budget may seem like a smart way to cut down on overspending. However, Vickery, along with other financial experts, advises against limiting your budget, as you’re unlikely to actually stick to it and could quickly find yourself reverting to overspending.
The goal is not to always try to be perfectly “balanced.” Because “perfection is not something that is healthy to strive for forever,” she added. But self-awareness to know when you feel like you’re moving to either side of the scale is the key to better overall spending management.
“Self-awareness is your superpower,” says Vickery. “The more aware you are of what triggers certain behaviors, such as overconsumption or underconsumption, the faster you can bounce back.”
Feelings like anxiety, depression, and overwhelm can put people on either end of the spending scale. That’s because while it’s something we can control, it’s life events outside of our control that can cause those feelings in the first place, Vickery says.
“If you try to control behavior without actually addressing the underlying needs and repressed emotions, the cycle continues,” she says.
Once you’ve identified your triggers and how you respond to them, you can work on improving your cycle to fit your lifestyle, says Vickery. “Redirect consumption to something that aligns with the person’s current intentions and goals,” she says.
Suppose you tend to shop in response to boredom, anxiety, or stress. Try channeling that energy into “another form of consumption that actually supports[your]intentions in the moment,” says Vickery.
That could mean stepping away from your phone or laptop, trying breathing and movement exercises, or using another sensory reset method such as the 5-4-3-2-1 method, which involves listing five things you can see, four things you can hear, three things you can feel, and one thing you can smell.
If you’re struggling with overspending, it may be wise to consult a trusted financial or mental health professional.
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