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?

Financial behaviour it has been a well-discussed topic recently in our society. Many

people

claim that

this

issue is caused by the economic and financial system.

Nonetheless

, others explain that lack of financial education may be the problem of bad

debt

on

people

. In

this

essay I am going to explain what kind of actions can be carried out to avoid these conduct.

First

, buying things unpayable is a real trouble that it have the world's economy due to these measures destroy banking and commerce environment along with the personal finances who get into a

debt

.

For instance

: Many

people

seek a loan to purchase something because they don´t have the

money

to pay it at the moment.

Consequently

, they will pay more expensive

this

item since they have to pay loan's interest, so these

people

won´t give

money

back to the bank.

Therefore

, these persons will stick in an unaffordable

debt

until somebody bent them

money

.

On the other hand

, I believe that

this

behaviour can be solved with many intiatives.

For example

: I strongly think that financial education can help

people

for avoiding

debt

, and unnecessary bank-loan.

In addition

, educating in

this

topic is the key to teach to public that you should have a healthy finance before to spend your

money

in unserved things. Another action is bank would improve their loan systems through better tools

such

as risk management and machine learning algorithms. To conclude,

although

,

this

behaviour is common in our society, and the reasons are for lack of information, in my view,

this

issue can be resolved with more education in schools, high-school and even universities.

Moreover

, with the develop of technology

this

conduct will be prevented and more

people

won´t get into debts