COVID-19 debt US stockpiling could lead to overspending
Aimee Picchi
Stockpiling has become something of a national pastime as worries about a second pandemic wave this winter fuel a desire to store away groceries and supplies. But Americans say they aren’t done yet, and that behavior could cost them financially.
One in 3 Americans say they are still planning on stocking up on pandemicrelated supplies, according to a December study from LendingTree, which surveyed more than 1,000 people about their shopping habits and plans.
Another one-third report they’ve already stocked up on groceries and household supplies, the survey found.
That may not surprise shoppers who have once again encountered empty toilet paper shelves or ongoing restrictions from retailers such as Costco, which continues to limit some sought-after items like Clorox wipes to one package per customer.
Stockpiling picked up in October as COVID-19 infections started rising – but the pandemic has only worsened since then because of holiday travel and colder weather. Stockpiling provides a psychological sense of comfort and preparedness during a crisis, experts say.
“We see this with hurricanes, snowstorms and we see it with the pandemic and the prospect of going into a winter where things get even worse than they had been,” said Matt Schulz, chief credit analyst at LendingTree. “It is making people take some action to make sure that they are okay if there is a repeat of what we saw in the spring.”
But those stockpiling behaviors can lead to some negative consequences, such as creating difficulties for others in search of essentials.
And there’s also a financial downside for people who are stocking up: Some are overspending and tumbling into debt, LendingTree found. Consumers
Financial experts advise consumers to take a few steps to avoid overspending or getting into debt.
say they recently spent an average of $359 on stocking up – or more than double the $178 they spent in the pandemic’s spring wave, LendingTree found.
That’s creating a financial hole for some consumers as more than onequarter reporting they’ve accrued credit card debt related to stocking up on pandemic supplies. “It’s important that people fight against those impulses and urges, and take a step back to understand what they need and what they might not,” Schulz says.