If there is one thing that nearly everyone has experienced during this pandemic, it’s boredom. We are all sick and tired of being at home and to alleviate this boredom, many of us have turned to online shopping. But what about the economic depression. Not to worry, as Americans, we will never let a lack of money stop us, especially when there is financing available.

Financing is great, but it may be contributing to a very unexpected increase in pandemic spending. Spending that, while good for some parts of the economy, has caused some unexpected problems.

Look at a few areas where consumer access to credit may be causing some issues.

Four-Legged Friends

With workplaces and entertainment venues forced shut, millions of people have suddenly found themselves with more time at home. For many, that means that they finally have time for a pet. This has caused the puppy market to explode and with it, the prices.

Puppy prices have easily increased 50 percent over the last year, and even more, for in-demand dogs like English Bulldogs. What you could buy for $3000 before the pandemic will cost you$5000 or more today. This is out of the reach for many, but people have found a solution.

Puppy financing, yes it really exists. Websites like Puppy Lending have stepped up to the plate to give consumers access to puppy loans.

Believe it or not, pet loans are no new thing. People have been financing animals on a limited basis for years. The pandemic has simply ramped up the activity. An increase in consumer demand along with the huge increase in purchase prices has made the practice far more common.

The problem with this uncontrolled canine spending is not only the inflated puppy prices but also the lack of insight into the future. What happens when all these people go back to work? Will the lack of available dogs now turn into a surplus of pets at the pound in the future?

Home Improvement Projects

For many people stuck at home, there was this one moment. They looked around at the home they had been stuck in for months and realized, “this place sucks”. This has led to a huge increase in business for the home improvement industry. The most common areas of focus have been kitchen remodels, bath remodels, and the creation of exterior living spaces.

All these projects will greatly improve the enjoyment of your home, but they are also very some of the most expensive projects that you can take on.

No worries, all that you need to do is finance it and, once again, financing is easy to come by. Websites like Acorn Finance have stepped in to help consumers stop hating their homes. Problem solved, or is it?

This massive increase in home improvement spending has caused an industry-wide shortage and pricing spikes. Everything related to the home is hard to get and much more expensive. This includes everything from 2×4’s to dishwashers. It has gotten so bad that new home closings have been delayed months because builders cannot even get appliances.

New Homes

Speaking of homes, let us take a look at new home sales. Over the last year, many people have found that there is just no saving their homes. It either does not have enough space, it is far too outdated, or it is simply located in the wrong state.

For many, the only way to upgrade their tiny home or escape restrictive pandemic restrictions has been to buy a new one. This has led to a boom in the housing market which has been a blessing but has also caused a lot of problems.

At the beginning of the pandemic, the housing industry and its suppliers began to shut down. They expected a massive decline in demand for housing, but they could not have been more wrong. This led to a huge housing deficit and a massive increase in home prices, especially in states like Texas and Florida.

Consumer Electronics

What is the tech fan supposed to do when they are forced to become a shut-in? They go out and spend some money, even if they need to finance it with a store credit card.

Consumer electronics have been hot during the pandemic. Things like Televisions, video games, and drones are not sitting on shelves long if they even reach the shelves. Tech-savvy buyers are snapping them up as fast as they can to ease their boredom.

So, what is the problem? Computer chips. Manufacturers cannot get enough computer chips to meet the demand. They have exhausted their current supply and manufacturing has been delayed due to the pandemic.

This chip shortage is not only affecting your ability to buy a PS5. It has affected all tech industries, especially the automobile industry. Manufacturers have been forced to slow automobile production and limit tech-heavy accessories like lane assist. It is so bad that rental car companies are even having to buy used cars to fill their fleets.

Wrapping Up

Even if they are financing, consumer spending is generally a good thing, but this is tied to the ability of manufacturers to meet demand. The pandemic has taken away this ability and this has obviously led to some big problems. Most of these problems should eventually work themselves out, but much of the fallout will continue to affect us for years.

Will there be overcrowding in pet shelters? Is the housing industry in a bubble that will eventually pop? Will consumer electronics prices come back down to earth?

We will have to wait and see.