: Some people get into debt by buying things they don’t need and can’t afford. What are the reasons for this behaviour? What action can be taken to prevent people from having this problem?

These days, some people often splash their money on costly and unnecessary things and end up with

unaffordable

debt. In

this

essay, I will examine the reasons and give some solutions for

this

issue.

To begin

with, a lack of financial knowledge plays a big part of the trouble. Because these people cannot balance between incomes and expenses, they are more likely to get involved in liabilities.

Secondly

, show-off is the other reason why they purchase costly things. Lots of people believe that it can help them impress other people. Take young people,

for example

; They buy things are like expensive cars, luxury purses or other brand name items in order to show their richness,

although

they can not afford its bills. The superficial thoughts

finally

put them into

unpayable

credit and drag them down every month.

However

, there are some plausible solutions which avoid landing in debt.

Firstly

, these people may benefit from making a meticulous spending plan.

This

method will help them keep track the way people want to spend money.

Furthermore

, living a simple life, which is just buying what you need and get rid of unneeded things, is

also

the solution of the problem.

For example

, there are many services people are not using but it costs much money. Monthly gym memberships can cost them hundred of dollars, but they barely can use

this

service. People still can get the same thing without having to pay by replacing

this

service with exercising at a local park or walking around the neighbourhood. To conclude, the lack of knowledge and show-off are the reasons for getting into debt, but it can be avoided by creating a spending plan or living a simple life. (286)