Taking things slow could be beneficial in safeguarding our finances

May is a month with numerous bank holidays, but financial matters continue despite the institutions taking a break.

Having a few additional days off won’t affect our capacity to search, order, purchase, and receive deliveries, as our consumer needs are met almost instantaneously, without having to leave the comfort of our sofas.

The question is, does this “instant gratification” culture put us at risk of making poor choices, falling victim to fraud, and experiencing stress? Would slowing down payment processes shift the balance from convenience towards security, for better or for worse?

Emma Quinn’s situation is critical as someone with bipolar disorder, where manic episodes can lead to excessive spending. She has purchased items ranging from comfort food to furniture and flights that were unnecessary and had no intention of using.

During times of stress and depression, emotional shopping can satisfy a craving, similar to gambling, and she has bought “whatever comes to mind.”

As a 30-year-old with bipolar disorder, she says, “you just click without considering the consequences.”

To address the consequences, she takes measures to slow down the purchasing process as much as possible. Moreover, her openness about these challenges indicates her desire to assist others in doing the same.

She has implemented several measures to protect herself, such as deleting her card details from online retailers and marketplaces, setting up payment alerts that require her confirmation, and allowing her parents to have some control over her finances as a backup.

Conor D’Arcy, head of research and policy at the Money and Mental Health Policy Institute, suggests that retailers should take more steps to support individuals like Emma.

Conor D’Arcy, the head of research and policy at the Money and Mental Health Policy Institute, believes that retailers have made it too easy to spend money on unnecessary things that people cannot afford, thanks to targeted advertisements, pushy nudges, and frictionless payment options.

Conor D’Arcy, head of research and policy at the Money and Mental Health Policy Institute, warns that targeted ads, pushy nudges, and frictionless payment methods can quickly lead to debt, especially for those who struggle with impulsivity or emotional spending. This issue is compounded by the high cost of living.

With the ease and speed of payments facilitated by technology, fraud has become a major concern. Scammers have exploited this, using various methods such as fake delivery messages or impersonating solicitors, resulting in huge losses for victims. These seemingly legitimate payments can amount to millions of pounds per day, with authorised push payment fraud losses totaling £249m in the first half of 2022, according to UK Finance.


Source : bbc.com

By Ryan

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