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 problems?

Personal

debts

tend to arise and build up

as a result

of purchasing unnecessary and unaffordable items. In my view,

this

problem is attributable to two factors and can be avoided if two measures are taken.

Firstly

,

such

merchandise as luxuries are associated with individual socioeconomic status and can easily result in

debts

. If those with poor financial means choose to buy sports cars or designer purses to be socially recognizable, they will soon become debtors. These status symbols are actually not essential for their daily needs but only appeal to their vanity.

Besides

, the convenience created by

credit

cards

is

also

one culprit of

debts

. As

credit

cards

are easy to obtain and allow consumers to

first

possess whatever they desire before they have to pay, they can plunge them into heavy

debts

if they do not have enough savings. Given the above factors, two preventive measures are probably effective. To start with, consumers should

to

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decide on what they really need to buy and become conscious of their own finances. It is important for them to distinguish life-essential commodities from ostentatious possessions.

Also

, they should plan on shopping rather than indulge themselves in shopping sprees.

Moreover

, financial institutes have the responsibility to carry out more thorough background checks before issuing

credit

cards

. Applicants who have poor

credit

ratings, unstable employment or questionable repaying ability are not eligible for being issued

credit

cards

. Lower

credit

limits can

also

be set for those often defaulting on payments. To sum up, people’s craving for social recognition and their excessive reliance on

credit

cards

seem to be responsible for personal

debts

. To prevent

this

, people should only purchase necessities for life and banks should be stricter with background checks.