Do "Revenge Spending" the Right Way

February 2025

Do "Revenge Spending" the Right Way

The impulse to go on a spending spree after living through a traumatic event has a name dating back to the 1980s: revenge spending.

Get Ready for Revenge Spending

A lot of us have the pent-up desire to make up for lost time and missed opportunities by splurging. Surveys report consumers are planning major expenditures, with travel, experiences and shopping among the top categories. Sporting events, concerts, luxury goods – all are fair game. This freewheeling feeling of suddenly spending on things you were unable to enjoy for so long can give you a regained sense of control.

 

Don’t Let Revenge Consume You

Before you hit the town for your revenge spending escapade, take a second to note the positive financial habits you’ve started and the progress you’ve made. Is it exciting to see a bigger number on your bank statement? Do you feel at ease knowing you’re closer to being debt-free? Are you more confident in the future?

With the right plan, you can continue to build on those good vibes and still enjoy the pleasures of purchasing again. Here are a few revenge spending strategies that can help:

  • Prioritize. Think about what makes you truly happy, like travel, family activities, socializing with friends, a personal hobby, etc. You’ll get the most happiness from spending on things you value.
  • Budget for it. Splurging and budgeting don’t typically go together. But setting a limit for your revenge spending spree – you could even put your splurge money in a separate account – is a way to satisfy your urge for consumption without experiencing the hangover and regret that come with overspending.
  • Be aware of your buying patterns. Making a single extravagant purchase is one thing. An uncontrolled spending spree is another. Be smart about your spending – now and in any situation.
  • Slow down. It’s easy to get caught up in the thrill of buying. Before you click the “buy now” button, let that item sit in your cart for 48 hours. This gives you a chance to take a breath and consider if that purchase is something you really want.

 

Your Credit Card Has Benefits – Use Them

If you finance your revenge purchases, do so wisely. Take advantage of your credit card rewards, such as reward points, low introductory or balance transfer rates, or cash back.

  • Reward yourself. With some cards, you earn a reward on purchases. For example, with the Key2More Rewards® credit card, you earn 5 points for every $1 spent on eligible purchases, with no caps. And you can redeem your points for travel, shopping, event tickets, gift cards, cash back and other ways to revenge spend.1
  • Start low. Cards with low interest rates can help you repay debts or finance purchases. The KeyBank Latitude® credit card is one. It offers 0% introductory APR for the first 15 billing cycles on purchases and balance transfers (balance transfers must be made in the first 60 days of account opening to qualify for the introductory APR). After that, your variable APR will be 19.24% to 26.24% based on your creditworthiness.2

  • Use the cashback advantage. With a cash back credit card, you can indulge by using the cash back you’ve accumulated – and continue to leverage the card to earn even more cashback as you spend.

  • Use your credit card benefits for travel. Your credit card may also offer benefits to help protect you when you travel. KeyBank Mastercard credit cards, for example, provide a variety of safeguards, such as MasterRental® coverage.

 

Practice Safe Spending

With an increase in activity on your credit card and more money flowing out of your checking account during revenge spending, it’s more important than ever to be on the lookout for fraud. Protect yourself with these tips:

  • Set alerts. Use the Account Alerts3 feature in online banking or your KeyBank mobile app to track all transactions and activity on your accounts.
  • Use contactless payment. Use the tap-to-pay feature on your debit or credit card (or connect it to your smartphone’s digital wallet) to make it harder for thieves to steal your information.
  • Turn on security settings. Make sure the security settings for your accounts and cards are on and will notify you if an issue arises.

Being smart with your money can take some of the stress out of tough times. Better yet, it can help you have more carefree enjoyment in good times too. For more tips on getting more out of your money, visit the Financial Wellness Center.

Content provided for informational and educational purposes only and is in no way to be construed as financial, investment, or legal advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal financial issues.

By selecting any external link on Key.com, you will leave the KeyBank website and jump to an unaffiliated third-party website that may offer a different privacy policy and level of security. The third party is responsible for website content and system availability. KeyBank does not offer, endorse, recommend or guarantee any product or service available on that entity's website.

1

Eligible purchases do not include: ATM cash disbursements, overdraft protection transfers or credits manual financial institution cash advances, KeyBank's Cash Reserve Credit transactions, person-to-person money transfers, a quasi-cash transaction including the purchase of traveler's checks, foreign currency, money orders or convenience checks, gaming transactions, balance transfers, annual membership fees, point-of-sale cash back transactions greater than the purchase amount, returned checks, and any credit, return or other adjustment to your account. Returns will reduce your rewards point balance. Points for $1,000 - $1,999.99 in spend are awarded a total additional 25% bonus. Points for $2,000 or more in spend are awarded a total additional 50% bonus. Bonuses are based on the total eligible purchase transaction points earned in a calendar month and are awarded once a month around the 5th business day for the previous month spend.  If your credit limit is less than $2,000 you will need to make payments (in addition to your required payment) throughout the calendar month in order to reach the spend limits required to earn monthly bonus points. See the Key2More Rewards® Mastercard® Terms & Conditions for full details, which are subject to change and may be found at www.key.com/personal/credit-cards/key2more-terms-conditions.html.

2

The 0% introductory APR does not apply to cash advances and is valid for the first 15 billing cycles on purchases and balance transfers. Thereafter, the APR may vary. Currently the undiscounted variable APR for Purchases and Balance Transfers is 19.24% to 26.24% (depending on your creditworthiness). Balance transfers must be made within 60 days of account opening for introductory APR to apply. The variable APR for Cash Advances is 28.24%. Cash Advance fee: 5%, $10 minimum. Convenience Check fee: 4%, $10 minimum. Cash Equivalent fee: 5%, $10 minimum. Balance Transfer fee: 4%, $10 minimum. Overdraft Protection Transfer fee: $0. There is a $0.50 minimum finance charge where interest is due. Foreign Transaction fee: 3% of each foreign purchase transaction in U.S. dollars. Transactions originating in Canada are excluded from this fee. Refer to Terms & Conditions.

3

Message and Data rates may apply from your wireless carrier.

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