Unexpected spending events often catch consumers off guard, prompting them to look for fast and flexible financial solutions. Emergencies and spontaneous purchases alike contribute to these unplanned expenses, many of which exceed a few hundred dollars. A study conducted by PYMNTS Intelligence in collaboration with Splitit surveyed over 7,000 U.S. consumers, examining how individuals address such financial disruptions. Findings indicate a growing dependency on credit-based payment methods, especially as consumers try to navigate financial unpredictability without derailing their budgets.
Earlier datasets on consumer financing showed an increasing trend in alternative funding methods like Buy Now, Pay Later (BNPL), but usage was concentrated among younger demographics and lower-cost purchases. The current research expands this understanding, showing that credit cards continue to dominate emergency and high-cost impulse transactions, regardless of age or income. The median amount spent on unplanned purchases now reaches approximately $500, while emergency-related spending tends to be even higher. This underlines a shift in how consumers weigh convenience and necessity during financial decision-making.
Why Do Shoppers Use Credit for Unplanned Expenses?
Which Payment Methods Are Gaining Ground Besides Credit Cards?
The survey revealed that more than one in three consumers made an impulse purchase costing $250 or more in the past three months. Common categories for such expenditures included auto parts, household appliances, and home repair items. Credit was the preferred method of payment for these purchases, with respondents often citing a lack of sufficient cash or savings at the time as the main reason. This trend illustrates how credit access directly influences a consumer’s ability to manage short-notice financial needs.
BNPL services, such as those offered by Splitit, are also becoming part of the consumer toolkit for handling unplanned expenses. While credit cards remain the dominant choice, BNPL models are capturing market share, especially among younger consumers who prioritize budgeting flexibility and interest-free payments. According to the study, consumers consider factors like repayment period, interest rate, and ease of approval when choosing a credit method.
Age differences played a substantial role in spending behavior. Younger consumers were more likely to make impulse purchases and feel confident about their future spending capabilities. Meanwhile, older segments leaned more toward emergency-related expenditures and used traditional credit options. This distinction reflects varying financial priorities and comfort levels with debt among different age groups.
“Consumers value access to flexible credit solutions, especially when faced with urgent purchases. The ability to split payments or defer them is increasingly seen as a practical way to maintain financial balance,”
said a representative from Splitit, emphasizing the relevance of the BNPL model in addressing real-time consumer needs.
Financial institutions and payment providers are now recalibrating their offerings to better serve this demand. Credit products that offer transparency and manageable repayment options are becoming more appealing. As consumers continue to face unpredictable economic conditions and rising costs, flexible credit access is likely to remain a cornerstone of household financial strategy.
As reliance on credit intensifies, consumers and lenders alike must be mindful of potential risks associated with debt accumulation. While tools like BNPL and credit cards offer convenience, they also require disciplined repayment practices to avoid long-term financial strain. For consumers, understanding the terms, fees, and interest implications of each credit option is crucial. Meanwhile, providers must balance accessibility with responsible lending frameworks to safeguard both consumer confidence and fiscal stability.
