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Share: For years, banks and credit card companies have known customers tend to spend more money when buying with credit cards instead of cash. A new study by MIT Sloan School of Management Professor Drazen Prelec and University of Utah Professor Sachin Banker found that excess credit card spending is actually driven in part by chemical response inside the brain. What Happened? The new study suggests consumers overspend when using credit cards because credit cards “step on the gas” in the pleasure centers within the brain. Other researchers had previously hypothesized that credit cards ...

Updated Mar 15, 2021 | 07:00 IST The study conducted by the Massachusetts Institute of Technology has revealed that credit card purchases trigger the same reaction in the brain as cocaine does. iStock  |  Photo Credit: Representative Image Shopaholics or compulsive buyers around the world may have just one simple thing in common - the frequent use of credit cards at shopping malls and retail outlets. Many would say it is kind of an addiction for them that is hard to change. But now, a new study has revealed that people who call themselves shopaholics can ac...

A study shows credit card spending triggers the same chemical reaction in the brain as addictive drugs such as cocaine. Researchers found credit cards 'step on the gas' by putting costs out-of-mind.

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Those who dub themselves as shopaholics really could be addicted to using their credit cards, research has shown. The study conducted by the Massachusetts Institute of Technology found that credit card purchases trigger the same chemical reaction in the brain as cocaine does. Due to not having to immediately pay credit card bills, researchers found …