Consumers losing Rs 20,000 a yr on 'mystery spending'

Majority of Indian consumers find it hard to keep track of every penny spent during shopping or spending leisure time, leading to "mystery spending" of Rs 20,000 per year, a global survey has said.

According to the survey by payment technology firm Visa, most of the consumers fail to estimate their "mystery spending" or the expenditure without an account for what it was used for.

"Indian consumers cannot account for an average of Rs 383 per week in cash spending, adding up to almost Rs 20,000 per year," the survey stated.

Moreover, younger adults between the ages of 18-24 claim to lose track of almost Rs 24,000 annually, 20 per cent more than the average amount, it added.

"Despite consumers' focus on controlling spending, they are still losing track of a considerable amount of cash each year, particularly when shopping or spending leisure time with friends," Visa Country Manager (South Asia) Uttam Nayak said.

Around 73 per cent of consumers believe that making lots of small cash purchases make it hard to track spending.

"Even for most organised spender, it can be tough to keep track of every cup of coffee, lunch or impulse purchase picked up at the shopping mall and paid for with cash," Nayak said.

The survey said consumers believe debit cards can help them monitor spending more closely and stay within budget.