15 Common Reasons People Overspend

Not being able to say "no": Some people have a hard time dealing with any type of confrontation. Whether it's kids who want the newest fashions, a spouse who wants the latest gadget or friends who ask to borrow money, these folks simply can't say "no," even when they don't have the money.

Shame: Often it is hard to admit to friends that you don't have the money to do certain activities, so you instead go along and pay for things that you can't afford. Maybe it's a monthly dinner at a fancy restaurant, or constant gifts. Instead of admitting that you can't afford it, you continue to participate because of shame.

Laziness: Some people spend too much simply because they're lazy. Instead of doing the necessary research, looking for deals and spending their money wisely, they pay much too much for things -- and often, it isn't even exactly what they want.

"Things will get better": Even though they don't have it at the moment, some people spend with the expectation they will have more money soon. Maybe they're banking on a raise or a bonus from work. They're sure more money will be available next month, so they go ahead and purchase something they can't yet pay for. But if the bonus or raise doesn't work out quite as expected, there will be a lot of debt to account for.

Just charge it: Some people who don't have the cash in their hand don't see credit cards as real money. Why should they? They can buy something and only have to pay 3% each month back to the credit card company. This, of course, can get you into a lot of financial trouble, since eventually it all needs to be paid back -- with interest.

Lifestyle maintenance: People can leave the workforce, lose a job or even go through bankruptcy but continue to spend as they had before. They are going to run into financial problems, since their new situation can't support their old habits.