The psychology of spending, debt and budgeting, with Abigail Sussman, PhD

Speaking of Psychology

Kim Mills

Science, Life Sciences, Health & Fitness, Mental Health

4.5 • 839 Ratings

🗓️ 8 April 2026

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

Buy now, pay later plans have skyrocketed in popularity in recent years, adding yet another variable to consider when making spending decisions. Abigail Sussman, PhD, discusses the psychological biases that influence how we spend, budget and borrow, including why splitting payments can make purchases feel more affordable, why we underestimate irregular expenses, and why many people carry debt even when they have savings. She also shares research-based strategies to help you make more deliberate choices and better manage your money. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	If you're looking to ensure your place, Sheila's wheels are super ace.
0:06.8	We've got an offer that a stance give a gift card for 40 pounds for brilliant home insurance deals.
0:14.3	Go direct to Sheila's wheels.
0:17.2	40 poundsy gift card applies for new Home Essentials policies purchased direct between the 5th of March and the 28th of April 2026.
0:24.2	See times and conditions at Sheila's Wheels.com.
0:30.1	If you've bought anything in the last few years,
0:32.7	you've probably encountered a new way of paying for your purchases.
0:36.5	When you check out at the grocery store or hit
0:39.3	pay now in your online shopping cart, you're asked, do you want to pay in full today or split your
0:44.7	purchase into four installments to be paid over time? The prevalence and popularity of these buy now,
0:51.2	pay later services has surged in recent years. One 20-25 survey found that more than
0:57.7	half of Americans had used a buy-now pay litter service such as after-pay, Klarna, or Zip in the prior
1:04.0	12 months. Today we're going to explore the psychology of spending, budgeting, and debt, including
1:09.9	the rise of buy-now-pay-later services.
1:13.1	How does the way we pay for a purchase affect our spending decisions?
1:17.1	Why is it so easy to overspend?
1:19.6	Why do people not pay off their credit card balances even when they have the cash?
1:23.9	And how can we make better financial decisions in an increasingly complex and tempting financial landscape?
1:33.2	Welcome to Speaking of Psychology, the flagship podcast of the American Psychological Association that examines the links between psychological science and everyday life.
1:43.0	I'm Kim Mills.
1:48.0	Thank you. between psychological science and everyday life. I'm Kim Mills. My guest today is Dr. Abigail Sussman, the V. Dwayne Rath Professor of Marketing at the University
1:53.6	of Chicago Booth School of Business.
	...

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