
Amid sweeping U.S. tariffs and escalating fears of rising prices, a growing number of Americans are resorting to “doom spending,” or making impulse purchases driven by economic anxiety.
CreditCards.com reports that 19% of adults now engage in this behavior, prioritizing immediate gratification ahead of long-term stability.
With tariffs on products from Canada and Mexico on the horizon, consumers are stockpiling goods and making major purchases, despite the possibility of racking up debt in an already precarious economy.
What Is Doom Spending?

Doom spending refers to impulsive purchases made to cope with fears about future economic instability. Unlike routine shopping, it is driven by anxiety over tariff increases, inflation, or geopolitical crises.
Consumers often buy luxury items or stockpile goods to regain a sense of control. CreditCards.com notes that 73% of Gen Z prioritizes living in the moment over saving, suggesting a generational divide in financial habits. This behavior, while momentarily soothing, adds a financial burden by increasing debt.
Tariffs Fuel Consumer Spending Spree

Spending fears have been exacerbated by President Donald Trump’s threat to impose 25% tariffs on Canadian and Mexican exports. CreditCards.com found 29% of Americans blame tariff fears for increased purchases, while 22% stockpile items such as non-perishable products or medications
Analysts warn that tariffs could increase consumer prices by 0.5–0.7%, leading to panic purchasing. Items like home appliances and electronics are popular targets, with 28% of people making over $500 in purchases on these items since late 2023, often using credit cards to finance them.
Debt Risks Loom for Impulse Shoppers

Doom spending is exacerbating America’s growing credit card debt crisis, with the total owed surpassing $1.21 trillion. CreditCards.com reports 34% of borrowers now have larger balances this year, with high interest rates compounding financial strain.
John Egan warns that impulsive purchases—often paid for on credit cards—can lead to long-term debt due to fees and compounding interest. Younger generations are especially susceptible, with Gen Z and millennials carrying over $1 trillion in collective credit card debt.
Why Younger Generations Are Most Vulnerable

Doom spending disproportionately affects Gen Z and millennials, who feel that the future is uncertain and that things are crumbling.
Social media and targeted marketing frame luxury spending as self-care, amplifying the consumption of emotional relief purchases.
Psychologists have attributed this to a psychological yearning for stability in the face of global uncertainty, such as climate change and political instability. Intuit Credit Karma finds that 73% of Gen Z views spending as a way to de-stress, despite the long-term risk it can pose to their finances.
The Psychology Behind Doom Spending

Clinical psychologist Fatima Alam explains that doom spending is a dopamine-driven mechanism for anxiety. Purchases create an illusion of control during crises but perpetuate stress as debt mounts.
This cycle worsens when people engage in “doom scrolling,” scrolling the web for negative news that triggers emotional spending.
Retail therapy transitions into a destructive cycle when used to avoid confronting financial realities, particularly during tariff-related uncertainty.
How Tariffs Influence Purchasing Behavior

Tariffs directly impact consumer psychology, creating a “now or never” mentality. CreditCards.com reports that 37% of Americans have already changed their purchasing habits in response to trade policies in anticipation of price hikes.
Home appliances and marked-down items are common purchases, as consumers race to get them before tariffs go into effect. However, urgency often leads to buyer’s remorse and more debt, with 23% of borrowers expecting deeper debt this year.
How to Avoid Doom Spending

Experts are suggesting strict budgets, avoiding impulse triggers, and shopping intentionally. To build resilience, Matt Schulz of LendingTree recommends concentrating on paying off debt and building an emergency fund.
Keeping track of expenses and prioritizing needs over wants can help to stop the cycle. For chronic cases, therapy helps address underlying anxiety, while avoiding retailers’ fear-based marketing tactics reduces exploitation of economic anxieties.
Long-Term Consequences for Financial Health

Doom spending undermines retirement savings and emergency funds, costing Americans $120 billion a year on credit card interest.
It erodes financial security over time, leaving individuals more vulnerable to future crises. Short-term relief comes at the expense of long-term stability, particularly with high interest rates. Wealth accumulation stalls as debt consumes disposable income.
Building Resilience Against Economic Uncertainty

There are proactive steps that can be taken to keep the effects of doom spending in check, such as automating savings or negotiating lower interest rates.
Schulz emphasizes small actions, such as paying off high-interest debt first to regain control. Financial literacy programs and mental health support are critical for managing uncertainty without compromising futures. Diversifying income streams and setting realistic goals further enhance financial resilience.
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