Emergency or unplanned expenses happen to consumers all the time. Some are impulse “wants,” and others are emergency “needs.” Either way, they can be expensive. In the last three months, more than one-third of shoppers spent at least $250 on an impulse purchase, with a median price tag of roughly $500. Typical emergency purchases cost even more.
Naturally, major unexpected expenses fall outside normal budgets, making it difficult for consumers to cover them. For impulse and emergency purchases alike, shoppers are more likely to pay with credit than cash. In fact, our latest research shows that access to credit heavily impacts a shopper’s ability to manage unplanned expenses and remain financially flexible, especially in the face of emergencies.
“Managing Unplanned Expenses: How The Pay Later Economy Fits Consumer Needs,” a PYMNTS Intelligence and Splitit collaboration, examines consumer spending trends for impulse and emergency purchases, focusing on the use of credit. It draws on insights from a survey of 7,078 consumers conducted from Jan. 29 to Feb. 7.
Inside “Managing Unplanned Expenses: How The Pay Later Economy Fits Consumer Needs”:
- The median cost of unplanned expenditures in key categories such as auto parts, appliances and more
- The shares of consumers who pay for impulse and emergency expenses with credit and cash
- What consumers prioritize in their choice of credit method
- The shares of consumers who use buy now, pay later (BNPL) and other alternatives to credit cards
- Which age groups are the biggest impulse spenders, and which have the most optimistic spending outlooks
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Download the Study
Managing Unplanned Expenses: How The Pay Later Economy Fits Consumer Needs
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Unplanned expenses happen all the time. Download “Managing Unplanned Expenses: How The Pay Later Economy Fits Consumer Needs” now to learn more about why access to credit shapes how shoppers make critical spending decisions when emergencies occur or when there’s an impulse deal that’s just too good to pass up.
The post Consumers Turn to Credit for Cash Management When Unplanned Expenses Hit, Study Finds appeared first on PYMNTS.com.
