The Psychology of Debt and Spending

Ever wonder why we take on debt knowing it will cost us — or why flashing a credit card can feel like flashing status? It’s not just poor math or bad habits. It’s biology, psychology, and marketing, all tangled together.

In today’s episode, we unpack the psychology of spending with Wright State University professor and author John Dinsmore, whose new book The Marketing of Debt: How They Get You breaks down the subtle — and not-so-subtle — ways marketers capitalize on our optimism, impulsivity, and desire for status.

We talk about:

• Why your brain underestimates the pain of future debt
• How credit card companies brand products to play on our egos
• Why handling money can make us less generous
• The hidden costs of “quiet luxury” and keeping up appearances
• And how Dinsmore’s own research found that just touching $20 bills increased testosterone and reduced charitable giving

This episode is a replay.

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