5 Worst Things Americans Overspend On (Hint: Eating out Isn’t One of Them)

The 5 Worst Things Americans Overspend On Hint Coffee Isn’t One of Them
The 5 Worst Things Americans Overspend On (Hint: Coffee Isn’t One of Them).
By Ben F. | 02/27/2026
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Last updated July 17, 2025
I’m a massive coupon/savings nerd, and an embarrassing amount of my time is spent talking to people to find out how much they’re spending.
In my experience, the average American is overpaying for things on an almost daily basis.
Here are the worst culprits for overspending (and how you can save money by avoiding them):
1. Auto insurance
Driving without insurance is illegal. But switching to something cheaper? Totally legal, and probably long overdue.
There’s a comparison tool you can use to see if you're getting ripped off. I thought $213/month for basic coverage was the best I could do. Turns out, I was overpaying a lot.
I ended up switching and saved $1,300/year for the same coverage. Insurance companies bank on us not checking. Rates quietly go up, and we keep paying.
Here’s how to see what your real options are:
Tap the link and enter your zip code, date of birth, and phone number
Answer a few quick questions about your car
Get matched with offers and pick the one that actually makes sense for you
Compare car insurance and see how much you could save
It seriously took me two minutes. I kept putting it off, but I wish I’d done it sooner. If your rate feels high, try this – you might be shocked by what you find.
2. Not tapping into your home’s equity
If you own a home, you’ve probably looked at your equity and thought, “There has to be a smarter way to use this.” Especially when big expenses pop up - the remodel you’ve been putting off, high-interest credit card balances, or just general life stuff that isn’t cheap.
But with today’s interest rates, refinancing or taking out a big lump-sum loan isn’t always the smartest move anymore.
Here’s an option a lot of homeowners are leaning toward instead: a home equity line of credit ( HELOC ).
A HELOC works more like a credit card tied to your home’s value. You tap into it only when you need funds, and during the “draw period” (usually 10 years), you’re just making minimum payments. After that, you pay back what you used over a longer repayment period.
It’s flexible, it’s there when you need it, and you’re not stuck paying interest on a giant loan you didn’t fully use.
Rates are usually variable too - so if the market cools down, you’re not locked into something sky-high forever.
If you’re curious what kind of offer you could get, tools like LendingTree’s matching tool make the comparison part easy. You answer a few questions, they show you your options, and you can decide whether a HELOC makes sense for whatever big expense you’re trying to tackle.
It’s one way to access your home’s value without overcommitting to a loan you don’t actually need.
Compare offers from lenders here.
3. Not getting paid for your screen time (some people earn up to $350/day)
If you’re already glued to your phone half the time, here’s a surprisingly legit way to make that time pay you back.
Freecash is one of the bigger platforms that pays users to test new iOS and Android games. No degrees, no resume, no “professional tester” nonsense - just download the game, try it out, and get paid.
Some offers can pay up to $350 depending on the game and how much you play. Freecash’s homepage shows new payouts constantly, and the better you get at picking the right offers, the more you can earn.
All you really need is a smartphone and a few spare minutes. I’ve used Freecash myself, and it’s one of the smoother experiences out there. They even threw me a $5 bonus the first time I installed a game, which was a nice little extra.
If you’re already scrolling anyway, this is an easy way to turn some of that downtime into actual cash.
Try Freecash and see what you can earn
4. Use this before you buy anything online.
A lot of people assume Amazon always has the best price. It doesn’t.
Big retailers know most of us don’t have the time (or patience) to open 10 tabs and price-check every purchase. So prices quietly creep up, and we just pay them.
This is one of the few browser tools I actually keep installed: Capital One Shopping .
When you shop online, it quietly runs in the background and does two useful things:
Automatically tries available coupon codes at checkout
Checks other sellers to see if the same item is cheaper elsewhere
Here’s what usually happens: you’re about to check out, and a small pop-up tells you there’s a better price or a coupon you would’ve missed. Sometimes it’s a few dollars. Sometimes it’s a lot more than that.
It takes about 30 seconds to install, and then you can pretty much forget about it while it does its thing.
If you shop online even semi-regularly, this is an easy win.
Get the Capital One Shopping extension here
5. Not getting a financial advisor
A lot of people try to manage their money completely on their own - and honestly, it’s one of the biggest financial blind spots out there.
Sure, you can DIY your investments, retirement plan, tax moves, and long-term strategy. But most people don’t have the time, tools, or interest to stay on top of everything. A good advisor isn’t just someone who picks funds - they’re someone who keeps an eye on your entire financial picture so you don’t have to.
Research backs this up, too. Vanguard found that working with a financial advisor can add around 3% net in extra returns per year ¹ . Over decades, that’s the difference between “comfortable” and “wow, I actually did pretty well.”
More importantly, advisors take care of the complicated stuff you’d never think about:
Making sure your retirement plan actually works
Handling weird tax implications before they become problems
Keeping your investments balanced instead of emotional
Helping you set up insurance, estate plans, and income strategies that fit together
If you don’t already know a trustworthy advisor, Datalign makes the search part easy. You answer a few quick questions, and they match you with vetted financial advisors in your area who fit your goals and comfort level.
If you want the simplest way to get expert guidance without hunting around, start with the match quiz and see who they recommend.
Find your advisor match on Datalign
6. Overpaying on home insurance
If you’re looking for better home insurance, whether that means lower rates or better coverage, there’s one thing you have to do: compare quotes from multiple providers.
A lot of people miss this step . But getting multiple options could save you thousands over the years you own your home. And yes – you can switch your insurance any time.
This site makes the comparison part easy. They match you with a range of home insurance offers based on your needs and budget, so you can choose the right fit without spending hours searching.
Just answer a few quick questions to get started. And if an agent reaches out, don’t ignore it, they’re there to help you lock in the best possible rate.
Enter your zip code to see your options
7. Credit card debt (when some companies are willing to help pay it off for you)
When you’re deep in debt, it can feel overwhelming. Like no matter what you do, you’re just treading water. And the longer it goes on, the harder it is to catch up.
That’s where National Debt Relief might be able to step in. If you owe more than $10,000 in credit card debt, medical bills, personal loans, or collections, they could help you combine it into one lower monthly payment.
There are no upfront fees, and many people become debt-free in 12 to 48 months. Getting started takes about 30 seconds – just answer a few quick questions to see if you qualify.
See if you qualify with National Debt Relief
8. Credit card interest payments
Stop bogging yourself down with those high-interest credit card payments. It seriously limits your spending power.
If your monthly interest payments are starting to creep out of control, you might need to take a look at changi…

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