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?

Nowadays, youngsters spend on needless exorbitant commodities, which results in

insolvency

status

due to

their budgets being bankrupted from many financial wastes.

This

phenomenon likely stems from the influences of a consumerism society and is stuck in a financial credit trap owing to the lack of financial knowledge. There is a general consensus about a potential solution for financial education.

To begin

with, it is undeniable of the influences of consumerism culture to

this

insolvency

. Perhaps the gravest impact is peer pressure, people attempt to own some symbolised commodities just to achieve validation from their friends because they want to integrate into a community.

For example

, in a materialistic culture, people prefer buying expensive

items

to generate a good impression of others' surroundings, which makes them feel compelled and beyond their means.

Additionally

, the prevalence of digital marketing in consumerism society in social networking sites with many psychological effects that were applied to these advertisement videos to persuade a target consumer group to buy these productions.

In particular

, aggressive emotional marketing techniques including fear of missing out and retail therapy in advertising campaigns have proven their effectiveness, which led to impulsive buying of some customers and temporary skyrocketing sales during holiday events.

Secondly

, many businesses launched their promotional events with plenty of discount codes and a lot of financial assistance methods to support purchasers, who do not have enough financial capacity, to buy their preferred

items

.

As a result

, the availability of credit cards and loans with relatively low barriers to entry can make it easy for individuals to accumulate debt, which might make them struggle with a

high interest

Add a hyphen

high-interest

show examples

ratio of

this

loan and some punishment fees as they did not pay their fees on time. In general, the lack of basic financial literacy and impulsive decision-making from losing control of emotions have contributed significantly to

this

insolvency

.

Nevertheless

, the most optimal way to alleviate

this

phenomenon is to strengthen financial knowledge about some financial assistance options provided by financial institutions.

Firstly

,

this

helps them choose the better loan with the lower fees and avoids any punishment fee in their contract.

Secondly

,

this

type of course helps them have a better financial scheme and minimizes being stuck in a financial trap.

Lastly

, they

also

need to consider the actual necessary

items

based on their requests to minimize financial waste for these trashes.

To conclude

, it is advisable that the lack of basic financial knowledge and impulsive decision-making are two of the predominant factors in

insolvency

, which can be solved by following a financial course and considering the actual necessary

items

for themselves.