New Delhi, Feb. 25 -- The increasing use of credit cards are a part and parcel of life now-a-days with the advantage of rewards, cashbacks etc., for everyday purchases. Credit cards, however, have a hidden psychological trick attached, which eventually, leads you to over-spend. You can manage your finances better if you understand the psychology of spending with a credit card.

Credit cards exploit the reward impulses in an individual's brain and thus can lead to over-spending. When one pays with credit cards, the brain's reward center, which is the striatum, is activated, similar to drugs like cocaine and amphetamines. The activation of the brain itself creates an expectation of pleasure and thus can cause over-spending without the expli...