Some people get into debt by buying things they do not need and can not afford . What are the reasons for this behavior? What action can be taken to prevent people from having this problem?

In recent times, the number of people defaulting on loans and debts has suddenly spurted across the globe. The common man is attracted to buy items for which he does not have any requirement or the affordability index of that purchase is too high for them. The main reasons identified for

this

behaviour are the increasing influence of social media and the easy availability of credit money.

This

essay shall discuss both the reasons and look to provide possible solutions for course correction.

Firstly

, the tech-savvy generation is so much engrossed in the social media platforms that they have forgotten the difference between real and virtual life. The lavish and luxurious lifestyle of famous artists, sportspersons, and celebrities is blindly imitated by the people and they wish to buy all those items branded by these personalities.

For example

, a man in new york took a hefty loan to book a chartered flight to impress his spouse just by copying the idea from his idol on Instagram. These kinds of immature and foolish behaviour prompt individuals to look for unwanted items and

further

take loans to satiate their desires. To curb

this

trend, proper schooling on financial security should be provided to societies at large. Various NGOs can initiate these knowledge centres to explain the difference between real and virtual life to the local public and how to manage the money better for living a serene and debt-free life. An additional reason for the high number of loan defaulters is the loose availability of funds to the masses. Banks and private organizations dish out clever schemes for luring individuals to procure items on credit and lay later.

This

eventually leads consumers to buy materials they were not able to afford earlier. What they don't realize is the hidden interest rates keep on mounting the debt funds on their heads. To reduce the voyeur methods used by these institutions the apex body of the country should intervene and pass out strict laws that make it mandatory to check the credit history of an individual before granting another loan. Any previous defaulter should not be handed with more loose cash to consume for his personal never-ending wants.

This

will encourage people to save more and plan to buy only the essential products from the market. In conclusion, the growing menace of capital defaulters due to the invasion of social media and easy cash availability through loans can be curbed if people become more aware of the financial planning as well as the government's intervention to come up with laws to restrict the flow of fund to Non-Performing Assets.