We all have to spend money, and we probably do it just about every day. People will generally try to stay within a budget and spend only what they can afford, but there are some situations in which people find themselves paying for things with money they do not necessarily have.

When we overspend, it can be simple for some people to justify the decision or ignore the consequences that going into debt can have. But this can be a slippery slope. Before a person realizes it, debt has built up, interest rates and fines are making it impossible to keep up with high payments and the debt becomes unmanageable. In these situations, it may be time to consider filing for bankruptcy.

But before that happens, it may be interesting to learn some consumer habits that can contribute to our overspending, even when we do not realize it.

There are specific situations in which consumers can often end up spending more money than they intended to, and they can be broken down into three different factors.

The purpose of a person’s purchase can have a huge impact on how much we end up spending. If we are shopping for these types of items, it can be easy to spend more money.

• Buying something embarrassing
• Buying something for someone else
• Buying something to enjoy an experience, rather than simply to make a purchase

Time is another huge factor in how people spend money. When people are shopping, they may want to avoid these time-related scenarios that can make it easy to overspend.

• Shopping when stores are not crowded
• Shopping as a way to kill some time

Finally, the resources we are using to shop can cloud our judgment. It can be easy to spend more if you run into these situations.

• Spreading money across multiple bank accounts, making it difficult to keep track of how much is in each one
• Not keeping records of significant recent and future payments

Even everyday situations and seemingly harmless spending habits can have a huge impact on our bank accounts. Seeing how easy it can be to overspend might encourage people across New Jersey to pay attention to their own habits and look out for similar situations to avoid.

Source: The Huffington Post, “5 Moments When You’re Most Likely To Overspend,” Candace Braun Davison, Aug. 30, 2013