Comments on: Do We Spend More When We Swipe Plastic?

By: Stephanie

Stephanie — Tue, 22 Jul 2008 02:45:11 +0000

@Aaron: I couldn’t find him saying that specifically, although I did find a bit on NPR with him discussing his opinions on the topic:
http://www.npr.org/templates/story/story.php?storyId=92178034

My point is not necessarily that he’s wrong - on the contrary, what he’s saying does apply to a lot of people - but that some people have a different relationship with paper money and credit cards than the one he’s reflecting.

By: Aaron

Aaron — Sat, 19 Jul 2008 03:29:54 +0000

Did Robert Frank say that “You spend 15% more when you use a credit or debit card instead of cash”

By: Christopher

Christopher — Wed, 25 Jun 2008 15:40:04 +0000

Your assertion about people not noticing an individual purchase
as much when the costs are grouped is interesting. The first thing I thought of is that new card ad where they say you can instantly get your current balance by texting them so you know how much to spend. I wonder how much their actuaries say that should increase spending on their cards.

By: The Simple Dollar » The Simple Dollar Weekly Roundup: Book Crunch Time Edition

Wed, 25 Jun 2008 14:01:17 +0000

[...] Do We Spend More When We Swipe Plastic? I keep in very careful tune with my spending on plastic - I pay the bill off in full every week. But I have in the past vastly overspent because of the plastic. (@ poorer than you) [...]

By: A Breakdown of The Credit Card Debate | Antishay Ventenne

A Breakdown of The Credit Card Debate | Antishay Ventenne — Wed, 02 Apr 2008 04:59:05 +0000

[...] Do We Spend More When We Swipe Plastic? - Stephanie at Poorer Than You [...]

By: Ed

Ed — Sat, 15 Mar 2008 22:15:23 +0000

I guess to me the question is does using a credit card lead to an increased spending regardless of ones approach to spending.

I can belive that for people who go to the store to “shop” using a credit card might obscur relationship between the item and the cost. So those using credit might spend more.

BUT what about those who are planning their purchases? For example somone who has created a food budget, or a cloths budget, or someone carefully watching their expenses to get out of debt? The reason this is important is that the study you are looking for and me as well is used as a bludgon against those who advocate using credit cards and paying them off each month. But if one on a budget would spend the same when using a credit card or not, then the benifits of the card become valuable.

By: Adfecto

Adfecto — Fri, 29 Feb 2008 20:44:13 +0000

Ha. I spend more when I use credit card AND when I use cash. How is that possible? The best way for me to spend less money is to just not spend ANY. Once I get start… ouch.

More seriously, I actually spend less on a debit card. It is real money. I track later exactly how much I spent and where (so it is accountable). Plus, I have to worry about over draft fees. It adds up to be the “most resistance” method of payment for me.

By: Getting A Life » The dark side of debit

Getting A Life » The dark side of debit — Fri, 29 Feb 2008 04:04:24 +0000

[...] being fiscally responsible while ignoring all evidence to the contrary (and studies have shown we spend more money with plastic than with cash), and cost ourselves more per year in fees while we’re doing it. Whatta [...]

By: Judy

Judy — Thu, 28 Feb 2008 15:59:15 +0000

About 25 years ago, I worked at a major department store in Missouri. We were required to close every sale with the phrase “May I put this on your “store name” charge card”. We were ghost shopped by undercover shoppers and could be fired for not saying that exact phrase. Why? We were explicitly told that people not feel the psychological impact of letting cash out of their hands when they charge and will therefore spend more.

By: Daily Links: Bacon Salt Edition ∞ Get Rich Slowly

Daily Links: Bacon Salt Edition ∞ Get Rich Slowly — Thu, 28 Feb 2008 04:28:06 +0000

[...] fall, Stephanie at Poorer Than You dug deep to answer the question, “Do we spend more when we use credit cards?” What did she learn? It depends. Many people do spend more when using plastic, but others have [...]