Is Compulsive Spending Creating Problems in Your Life?

Compulsive spending can be defined as excessive spending and shopping with significant consequences. According to Stanford University, 17 million Americans or 6% of the population are compulsive spenders or shoppers, and according to other sources, the rate could be as high as 10%. In a study by Nataraajan and Goff in 1991, they estimate that non-destructive compulsive buying may exist in 25% of the population.

Compulsive shopping was first described by a German psychiatrist in 1915. Although very similar in nature, there is a fine line between whether compulsive spending is a compulsion or addiction. Both compulsions and addictions can relieve stress. However, whereas a compulsion is a repetive, ritualistic behavior with no rational motivation, an addiction is characterized by an inability to discontinue a harmful behavior. The key difference is one causes a negative consequence, and the other one does not. Therefore, compulsive spending is an addiction because if the behavior continues, it will eventually cause either financial problems, marital problems, or running out of room to store everything.

The causes instigating compulsive spending are varied. Loneliness, depression, the resulting high, a greater self-esteem, or some other unfilled need can be responsible. In some cases, it can even be a form of self-medication since compulsive shopping can be associated with other psychological disorders too. In addition to these causes, the availability of credit cards and the focus on materialism may contribute to the problem.

Although compulsive spending has not been widely studied, statistics reveal the following facts about compulsive spenders.

• Compulsive spending is almost equally distributed between men and women.
• More compulsive spenders make under $50,000 per year rather than over $50,000.
• Women usually hide their purchases from their husbands.
• In order of preference, women are usually compulsive about buying clothes, shoes, jewelry, makeup, and compact discs, whereas mean are compulsive about buying clothing, shoes, electronics, hardware, and cds. However, unlike the average shopper, compulsive spenders will buy more than one item. For instance, the average shopper might buy one skirt whereas the compulsive shopper will buy five skirts.

Are you a compulsive spender? Ask yourself the following questions. If you answer yes to more than one of these questions, you may be a compulsive spender.

• Do you use shopping to make you feel better?
• Do you feel guilty after shopping?
• Do you buy things you don't need?
• Do you buy more than when one item, espeically if you don't need it?
• Have you bought items you've never used that still have the tags on them?
• Do you buy things on credit that you would not normally buy if you had to spend cash?

One of the primary differences between compulsive spending and non-compulsive spending is that compulsive spending usually results in negative consequences. Some of these consequences are:

• Stress from increased debt or trying to figure out how to pay for everything.
• Overspending and hiding it or lying about it can cause marital problems.
• Guilt and shame associated with the problem of compulsive spending.
• Unnecessary items taking up space in your home.

To end compulsive spending, you need to learn to change habits that encourage the behavior.

• Cut up all but one credit card and only use that credit card for emergency purposes.
• Leave the credit card at home in a secure spot.
• Shop with a list, and stick to it.
• Avoid watching tv shopping channels, catalogs, and online auctions.
• Don't go shopping with people who encourage you to spend. Have someone accompany you shopping that is aware of your problem and can offer moral support if you go overboard.
• Try to address the root cause of the problem and how to resolve it. If you're out of control, seek professional help.
• Replace the shopping addiction with a healthier addiction.
• Join a support group.

Compulsive spending is a symptom of a bigger problem. Although compulsive spending and shopping may make a person feel good momentarily, it is a fleeting happiness. Most people use compulsive spending to fill an unmet need whether it be depression, loneliness, boredom, the need for self-esteem, or something else. Unfortunately, after the high dissipates, the same problems are there. Consequently, you may feel worse afterwards because in addition to buying unnecessary items, it may have increased debt and financial problems. Furthermore, if you have tried to hide your purchases or lie about them, you may feel guilt or shame.

If your life is out of control because of compulsive spending, there are three steps to overcoming the problem, First, you need to admit your spending is out of control. Secondly, you need to understand the underlying cause of why you compulsively spend. This may require the help of a competent therapist. Finally, you need to recognize what patterns or behaviors encourage compulsive spending and learn to change them. Dr. Phil, a well-known psychologist and host of a popular talk show, says, "People don't break their habits; they replace them with new ones."