I saw an article on MSNBC.com that really drew my attention – 8 reasons you spend too much. Guess what was number one on the list? If you guessed using credit cards then you’re right so put away the plastic!

Multiple studies, including this 2008 study published in the Journal of Experimental Psychology, have found consumers are willing to spend more when they pay with a credit card instead of cash. “Credit cards allow consumers to focus more on what they’re getting, or buying, than what they’re losing, or spending,” explains Kit Yarrow, a professor of psychology and marketing at Golden Gate University. Credit cards “buffer the reality of spending because they leave more cash in our pockets and purses and provide a delay before payment is required.”

When you buy something with cash, you feel as if someone is trying to take something away from you – your money! If you swipe a credit card your brain doesn’t register this immediate loss of something that is yours.

So what else made the list of reasons why you spend too much money?

• Listening to music
• Buying in bulk
• Dieting
• Tracking exact costs
• Buying clearance merchandise
• Shopping without a list
• Falling for clever pricing tactics

So what’s your downfall?

No related posts.

As promised, here is a video from the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 live chat hosted by CreditCards.com on February 22, 2010.

Note to email subscribers: There is a video embedded in this post, please click through to the blog to view the video.

Related posts:

1. CARD Act of 2009 Goes Live
2. Who is This Dave Ramsey Guy Anyway?

Tomorrow, the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 goes live. According to the White House Blog, “The law bans unfair rate increases, prevents unfair fee traps, requires plain language in plain sight for disclosures, increases accountability all around, and institutes protections for students and young people just for starters.”

If you have a credit card, you may have noticed some new information on your statement. This information is just part of the credit reform act. In addition to your minimum payment, you will now see how long it will take you to pay off the credit card only paying the minimum payment every month (think 25+ years). There will also be a second figure showing how an increased and regular monthly payment will allow you to pay off your card much more quickly (think 3 years).

The credit card reform can be a bit confusing and to help alleviate this confusion, the White House Council of Economic Advisors is hosting a live video discussion tomorrow. The chat will be hosted on the CreditCards.com website at 2:00 pm ET.

If this video chat follows others that the White House participates in, a video archive of the chat will likely be available as early as tomorrow evening. I will keep an eye out for it and post it here at Six Figures and Broke as soon as I see it.

Related posts:

1. CARD Act of 2009 – Credit Card Reform Q&A

Suze Orman speaks with CNN’s Anderson Cooper about the state of personal finance in 2010. Orman cautions everyone to be careful: get out of debt, have an expansive emergency fund, etc – even if they weren’t affected by the unemployment and financial crises of 2009. Orman calls this the “Back to Cash Movement.” Ramsey fans are already back to cash but now Orman fans will be joining them.

Note to email subscribers, please click through to view these videos.

Related posts:

1. Will the Bank Bailout Fees Affect You?
2. CARD Act of 2009 – Credit Card Reform Q&A
3. Who is This Dave Ramsey Guy Anyway?