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Doom Spending

March 5th, 2025 at 09:19 pm

Today was the first time I heard the term, "Doom Spending." It is consumers spending more than they normally would for fear of rising prices due to the tariff threat. CNBC had an article about it and it said it was more than just stocking up, but people buying things they cannot afford because they fear the prices are going up. The issue is some of these people are already deep in debt and instead of working on paying down their debt, they are increasing it.

Things are uncertain and I think there is a fear that people won't be able to get things  if prices continue to rise. I can't imagine any of our SA folks succumbing to it, but I can see people rationalizing a big purchase saying they are saving money now by buying a big ticket item. 

Here is the URL for the story if you are interested: https://www.cnbc.com/2025/02/27/1-in-5-americans-are-doom-spending-heres-how-that-can-backfire.html

Posted in Shopping | 6 Comments »

6 Responses to “Doom Spending”

  1. Amber Says:
    March 6th, 2025 at 03:41 am 1741232477
    1741232477

    I am guilty. I bought water, toilet paper, and paper towels. We’re on the heels of Hurricane season and things get really bad if a storm is coming. I had the extra funds, but prices are trending up so I bought them.

    I wanted a new sofa but I'm holding off.

  2. rob62521 Says:
    March 6th, 2025 at 02:37 pm 1741271849
    1741271849

    Amber, I don't think you are guilty. The article talks about people buying stuff when they already have a ton of debt. You are just being smart and stocking up.

  3. Lots of ideas Says:
    March 6th, 2025 at 07:15 pm 1741288510
    1741288510

    Anyone carrying credit card debt that they are paying 15-28% interest on and buying things now is adding that interest rate to their purchases. Even if they pay cash, they could be using those funds to pay down debt.

    Stocking up because you fear shortages of critical items can make sense. But before making purchases to ‘save money’, people need to think about the monthly cost of debt.

  4. Tabs Says:
    March 7th, 2025 at 08:00 am 1741334457
    1741334457

    While the sentiment is understandable, I feel as though the conclusion should be to save more instead. When you know things are about to go badly, if you can, the logic should be to save more to protect against said bad things. It's when you are doing well that, perhaps then, you can spend a bit more than usual.

  5. Tabs Says:
    March 7th, 2025 at 08:03 am 1741334598
    1741334598

    I want to clarify that I meant in terms of people spending on things they don't need before prices go up. Like maybe cruises or other luxuries. Spending for necessary essentials to weather the storm is an entirely different story.

  6. rob62521 Says:
    March 7th, 2025 at 07:55 pm 1741377359
    1741377359

    Tabs, I think it was a given as far as necessary spending v. luxury spending.

    Lots of Ideas, you are spot on!

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