Consumers frequently encounter unplanned expenses, which can range from impulsive purchases to urgent necessities. These unexpected costs often exceed budgetary limits, with over a third of shoppers spending at least $250 on impulse buys in the past three months, averaging around $500. Emergency expenditures tend to be even higher. The reliance on credit rather than cash for such expenses highlights the importance of credit availability in maintaining financial flexibility during emergencies. Recent research underscores how access to credit influences consumer behavior when dealing with unforeseen costs.

A recent collaborative study between PYMNTS Intelligence and Splitit explores how consumers handle impulse and emergency purchases, focusing particularly on the role of credit. This investigation draws upon data collected from 7,078 individuals surveyed between January 29 and February 7. It reveals insights into the median costs of various unplanned expenses, including auto parts and appliances, as well as consumer preferences regarding payment methods.

The findings indicate that a significant proportion of consumers opt for credit over cash when managing these types of expenses. Moreover, the study delves into what factors consumers prioritize when selecting their preferred credit options. Additionally, it examines the growing popularity of alternative credit solutions like buy now, pay later (BNPL) services among different demographic groups.

Younger demographics appear to be more inclined towards impulsive spending, yet they also exhibit optimistic spending outlooks compared to older generations. This suggests evolving trends in how younger consumers approach financial decisions and manage unexpected costs.

Access to credit significantly shapes consumer choices during critical moments of unplanned expenses. Whether driven by irresistible deals or immediate needs, having flexible credit options empowers shoppers to navigate through both impulsive and necessary expenditures effectively. Understanding these dynamics offers valuable insights into modern consumer behavior patterns amidst an increasingly complex financial landscape.