Financial experts warn against credit card debt and emotional spending

Financial experts are warning against common credit card habits that lead to mounting debt. A survey by LendingTree of 1,500 cardholders in the United States found that over 40% of users routinely pay only the minimum balance on at least one card. This trend is even more prevalent among Gen Z cardholders aged 18-29, where the figure rises to 58%.

Corinna Rose, a certified financial planner at Bell Investment Advisors, noted that “minimum payment is not a payment strategy, it is a debt management strategy,” explaining that while it keeps accounts active, it often fails to reduce the actual debt. With an average annual percentage rate (APR) of 20.94% and an average debt of $7,756, relying solely on minimum payments could result in a repayment period of nearly 27 years and total costs exceeding $13,000.

In addition to debt management issues, consumer spending is being driven by emotional triggers, a phenomenon known as “vibe spending.” This behavior involves making purchases based on moods—such as stress, boredom, or loneliness—rather than necessity. While often framed as a “self-reward,” this pattern of emotional spending can lead to significant budget inflation as small, impulsive purchases accumulate over time.