52% of Americans are spending more than they earn, out of which 21% regularly have monthly expenses in excess of their income, only 13.5 percent adjust their spending the following month to get their finances back on track.

For more such interesting facts, check our infographic on Overspending in America

Infographic by The Credit Examiner

Overspending in America – Statistics and Facts

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Money Sources %age
Savings 36%
Credit Card 22%
Delayed Bill Payment 12%
Loans 8%

The average American spends $1.33 for every dollar earned

One in four Americans has more debt than savings

Average person’s spending increased about 30% in the last 25 years. That’s on top of the fact that average work hours have risen about 10% in 25 years.

Only 50% of Americans are setting up a monthly budget, out of which 21% fail to meet the budget at least six months out of every year

Only 44% of Americans understand that a credit score measures the risk of not repaying a loan, rather than their debt or financial resources

11 Major reasons of Overspending

  • Do not set monthly saving goals
  • Easy access to credit
  • Easy access to cash
  • Credit card misuse
  • Giving in to temptation
  • Spending to feel good
  • Can’t say no
  • To prove self worth
  • Sense of power
  • Lifestyle maintenance
  • Keeping up an image


15 Tips to Stop Overspending

  1. Keep track of spending
  2. Stick to your budget
  3. Create shopping list
  4. Don’t buy something just because it is on sale.
  5. Make price comparison
  6. Ask yourself before buying
  7. Carry enough cash
  8. Eliminate unnecessary spending
  9. Strive to live below your means
  10. Find cheaper alternatives
  11. Appreciate what you have
  12. Set your own spending limits
  13. Learn how to find great deals
  14. Don’t count on your credit cards
  15. Get professional help