The psychology of overspending

Overspending usually happens when we spend more money than we can afford, often on things we don’t need. Once you understand the triggers, it’s easier to spot the warning signs.

The dopamine hit 

Buying something new releases dopamine – the “feel-good” chemical – in your brain. That rush can make you want to buy again, even when you know you shouldn’t. 

But the excitement of buying can quickly wear off, leaving you searching for the next thing to lift your mood. 

Spending for comfort 

Shopping can be a way to cope with stress, anxiety and loneliness. It may help in the short term, but with time overspending can make your mental health worse, especially if it leads to debt. 

For some people – especially those dealing with mental health challenges or conditions like ADHD – managing spending can be even tougher. Recognising when shopping becomes a coping mechanism is an important first step toward change. 

If that sounds familiar, take a look at our guides on ADHD and debt and money and mental health. 

The comparison trap 

Social media makes it easy to compare your life to others. Seeing friends or influencers showing off clothes, gadgets and holidays can make you feel like you’re missing out. This can create pressure to spend, even when you can’t afford it. 

This kind of “comparison spending” is often emotional rather than practical, and is about keeping up appearances, not meeting real needs.

Marketing tricks 

Modern marketing is designed to make you spend without thinking. 

Messaging like “limited time offer” and “only two left in stock” is designed to make you buy on impulse. Flashy red sale banners, countdown timers and “free delivery if spend £X” all push you to act fast before your brain catches up. 

Shops and websites are carefully arranged to make you spend more — from product placement at eye level to attention-grabbing colours, background music and even lighting, scents, or layout that encourages you to explore more. 

Once you start spotting these techniques, they lose much of their power.

Changing your spending habits takes time, but small changes can make a big difference. Here are some simple steps to help you get started.

Try the 24-hour rule 

If you feel an urge to spend, take a step back. Try the 24-hour rule – wait at least a day before deciding. Most of the time you’ll find the emotional rush wears off and the urge will pass. 

Spot your triggers

Notice how you feel before you spend. Are you stressed, lonely or bored? Are you scrolling on social media? Finding patterns can help you find other ways to cope – like calling a friend, going for a walk or doing something creative. 

Focus on your goals

Ask yourself: “Do I need this, or do I just want it right now?” 

Write down what matters to you – maybe becoming debt-free, saving for a holiday or having more peace of mind about money. Saying no now can mean saying yes to something more important later.

Make it harder to spend 

Create friction between you and your purchases. Adding barriers gives you time to think before you buy something you might regret. You could: 

• Delete shopping apps
• Remove saved payment details
• Unsubscribe from marketing emails
• Limit your time on social media that encourages shopping 

Use Buy Now Pay Later with caution 

Buy Now Pay Later (BNPL) can make purchases feel smaller by spreading the cost, but when lots of payments overlap it’s easy to lose track of what you’ve spent and end up with more going out than you thought.

Before using BNPL, check whether you can afford the full price upfront and whether you already have other payments due. If you’re unsure you can afford the payments, that’s usually a sign it isn’t affordable right now. 

Use budgeting tools 

Our free budget planner can help you track where your money goes and spot overspending patterns. Once you know where your money’s going, you can set limits for certain categories — like eating out or online shopping — and see real progress over time.

Overspending is common, but if debt is building, bills are being missed, or credit is covering everyday costs, we can help. 

We offer confidential debt advice online or by phone, guiding you through budgeting, checking benefits and exploring your options for managing debt.