Spend lots after place is overwhelmed by sudden increase (7)
I believe the answer is:
splurge
'spend lots' is the definition.
'splurge' can be an answer for 'spend' (thesaurus). I am unsure of the 'lots' bit.
'place is overwhelmed by sudden increase' is the wordplay.
'place' becomes 'pl' (abbreviation used in postal addresses).
'is overwhelmed by' means one lot of letters goes inside another (inserted letters get absorbed or overwhelmed).
'sudden increase' becomes 'surge' (a surge is a sudden increase in something).
'pl' put inside 'surge' is 'SPLURGE'.
'after' is the link.
Can you help me to learn more?
(Other definitions for splurge that I've seen before include "Not very well" , "Fork out" , "Immoderate indulgence" , "Splash out" , "Spend lavishly" .)