Doom scrolling. Doom news. Doom spending?
If you’ve ever found yourself stress-shopping after a rough day or worse, adding items to your cart while reading gloomy headlines. You might be caught in the cycle of doom spending, don’t worry, you’re not alone, and there are ways to regain control.
In this post, we’ll break down what doom spending is, why it happens, how it can impact your finances, and most importantly, what you can do to avoid it and recover if it’s already taken a toll.
What Is Doom Spending?
Doom spending is a relatively new term describing the habit of making unnecessary or impulsive purchases in response to stress, anxiety, or feelings of hopelessness about the future. It’s closely related to doom scrolling, where people compulsively consume negative news online. Doom spending is the retail therapy version, offering momentary relief, but often followed by regret and financial strain.
Common Signs of Doom Spending:
- You shop online to feel better when you’re stressed or anxious.
- You regularly overspend on things you don’t need.
- You’ve started hiding purchases or avoiding your credit card statements.
- You feel guilt or regret after buying something impulsively.
For example, someone might read bleak economic news or feel overwhelmed by global uncertainty, and in an effort to self-soothe, they click “Buy Now” on a new gadget, expensive meal delivery, or trendy item of clothing.
The Cost of Doom Spending
Doom spending doesn’t just cost you the price of your latest impulse buy; it can quietly snowball into more serious financial trouble.
Financial Impacts:
- Credit card debt: Repeated impulse spending often ends up on high-interest credit cards.
- Overdraft charges: Small purchases can add up quickly, leading to bank fees or bounced payments.
- Missed bill payments: If you’ve spent your paycheck on wants rather than needs, your essential bills can suffer.
- Long-term savings loss: Money spent on impulse can delay your goals, like building emergency savings or investing in retirement.
In Canada, household debt levels remain high, and many people report living paycheck to paycheck. In this climate, doom spending can deepen financial vulnerability, especially for individuals already juggling inflation, interest rate hikes, and uncertain job markets.
How Does It Influence Us?
Doom spending is more than poor budgeting; it’s often a coping mechanism for difficult emotions. Understanding the psychology can help you build compassion for yourself and make better choices going forward.
Why We Doom Spend:
- Stress & Anxiety Relief: The act of buying something can release dopamine, a feel-good chemical that temporarily improves mood.
- Lack of Control: When world events feel chaotic, spending money can provide a sense of control.
- Social Influence: Seeing influencers or peers making purchases on social media can normalize impulsive spending, even in tough times.
- Instant Gratification: Online shopping makes it dangerously easy to act on impulse, often with just one click.
Recognizing that these habits are rooted in emotional triggers is the first step toward changing them.
7 Tips to Avoid Doom Spending (and Recover If You’re in Debt)
If you’ve fallen into the doom spending trap, you’re not alone and you’re not stuck. Here are practical strategies to stop the cycle and take back control of your finances.
1. Pause Before You Purchase
Create a 24-hour rule for non-essential purchases. Waiting even a day can help you decide if you really need that item or if it was an emotional decision.
2. Set a Monthly “Feel-Good” Budget
It’s okay to treat yourself, but do it with limits. Set aside a fixed amount (e.g., $50/month) for guilt-free spending. This keeps you in control without feeling deprived. To learn more on how to create a budget visit the resource below:
Financial Consumer Agency: Making a Budget
For more comprehensive budgeting strategies, read our guide on budget tips for beginners.
3. Identify Your Triggers
Keep a journal or use a spending tracker app to note when and why you spend impulsively. Are you anxious, bored, or overwhelmed? Recognizing patterns helps break them.
4. Unsubscribe and Unfollow
Reduce temptation by unsubscribing from marketing emails and unfollowing accounts that push consumerism. Replace them with content that supports your financial goals.
5. Replace the Habit
Instead of shopping to cope, try healthier alternatives like going for a walk, journaling, calling a friend, or doing a creative activity that lifts your mood.
6. Use Cash or Prepaid Cards
Using cash or a prepaid card limits your ability to overspend. It can help reinforce boundaries and make purchases feel more tangible.
7. Create a Debt Repayment Plan
If doom spending has led to debt, facing it head-on is key. Write down what you owe, the interest rates, and your payment dates. From there, consider structured repayment strategies like the snowball method (paying off the smallest debt first) or avalanche method (tackling the highest interest debt first). It may also be worth considering a personal bankruptcy or consumer proposal, depending on your situation. Learn more about debt relief options available in BC.
The Snowball vs. Avalanche Method: Which Debt Repayment Strategy Works for You?
When it comes to paying off debt from doom spending or any kind of debt. Two popular methods stand out: the snowball and avalanche methods. Both have their benefits, and the best choice often comes down to what motivates you most: emotional wins or financial efficiency.
Snowball Method: Build Momentum with Quick Wins
- List all your debts from smallest to largest balance (ignore interest rates for now).
- Make the minimum payments on all debts.
- Put any extra money toward the smallest debt first.
- Once that’s paid off, roll the amount you were paying into the next smallest debt.
- Repeat the process until all debts are cleared.
Best for: People who need motivation and visible progress to stay on track.
Example:
- Credit Card A: $600 at 19%
- Credit Card B: $1,200 at 16%
- Line of Credit: $3,000 at 9%
Start by focusing on Credit Card A. Once it’s paid, apply that monthly payment to Credit Card B, and so on.
Why it works: Paying off smaller balances quickly can feel satisfying and keep you motivated, especially if you’ve struggled with financial stress or hopelessness. If debt feels unmanageable despite these strategies, consider speaking with a Licensed Insolvency Trustee about your options.
Avalanche Method: Save More on Interest
How it works:
- List all your debts from highest to lowest interest rate.
- Make the minimum payments on all debts.
- Apply extra funds to the debt with the highest interest rate first.
- After that’s gone, move to the next-highest interest rate.
- Continue until you are debt-free.
Best for: People focused on saving money and minimizing the cost of interest.
Example:
- Credit Card A: $1,000 at 22%
- Credit Card B: $1,500 at 18%
- Line of Credit: $3,000 at 9%
Start with Credit Card A, even if it’s not the smallest because it costs you the most interest. Over time, this method will save you more money than the snowball approach.
Why it works: You’ll pay less in interest overall, which can significantly reduce the total amount you owe.
Which Should You Choose?
- If quick motivation helps you stay focused and committed, the snowball method might be your best bet.
- Understanding the difference between secured and unsecured debt can help you prioritize payments.
- If you’re more comfortable playing the long game to save money, go with the avalanche method.
No matter which strategy you pick, what’s important is that you start—and stay consistent. Both approaches can help you get out of debt faster and feel more in control of your financial future.
Doom spending thrives on fear and uncertainty, but knowledge is power. By recognizing the signs, understanding the root causes, and putting practical steps in place, you can break the cycle and take back control. If doom spending has led to unmanageable debt, you don’t have to face it alone.
At C.E. Craig & Associates Inc., we help individuals throughout British Columbia find lasting solutions to financial stress. A Licensed Insolvency Trustee (LIT) can work with you to review your debts and help decide if a consumer proposal or personal bankruptcy is right for you.
You are not a failure because you’ve struggled with spending. With the right tools and support, recovery is possible and a more confident, financially stable future is within reach.
