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

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It is irrefutable that people are shopping without understanding the needs in their daily life,
this
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trend has increased rapidly in recent years. Due to
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people face financial issues and most times they buy items which are not required and unaffordable.
However
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, I will be discussing the reasons and actions to be taken to control
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below. One of the major reasons is no proper financial planning. The majority of middle-income people used to buy unnecessary items without understanding their financial status. In most cases, the expense of an individual is more than their income.
For instance
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, when some youth start earning, they try to buy a vehicle or asset without re-thinking whether it is required and affordable at that point
of
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in
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time.
In addition
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, they apply for financial supports from banks to buy
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expensive material.
Secondly
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, to show a better standard of life to society. The trend of materialistic love has increased drastically in recent years. Few people try to express gratitude or love by buying unaffordable items. They even take financial support from banks or friends like buying gadgets, vehicles and gifting.It is always better to avoid
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practise as they are trying to show their standard of life like affluent people. One of the major
action
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activities
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which can prevent unwanted shopping can be taken by the individual itself . The person must take initiatives by thinking twice and understanding about the current situation.
Moreover
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, the government must increase the tax on overpriced items
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that people will buy it only if it is required.
For instance
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, some people have 2 to 3 vehicles in their house,
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people must be either taxed highly or provide a bar on
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purchase.
Secondly
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, restrictions on credit card usage. In many houses,it is seen that people do shopping using credit cards. Since the amount is in advance people spend and repay the amount. The credit card holders must be provided with limited facilities and
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they must be restricted on spending by the providers,
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as providing limit by checking the background of expense and income of each individual and increasing and decreasing whenever required. To summarise, people believe that as many expensive items in their house show a good status in society.
Therefore
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, people get into debt by purchasing unnecessary and costly products . It is the responsibility of an individual to think before they buy .
In addition
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, the government must not support
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people with loans.
Submitted by pooch6161 on

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Topic Vocabulary:
  • consumerism
  • financial literacy
  • impulse buying
  • credit score
  • debt management
  • sustainable living
  • emotional spending
  • budgeting skills
  • peer pressure
  • retail therapy
  • frugality
  • credit limit
  • financial counseling
  • minimalistic lifestyle
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