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

Many

people

owe money because they purchase unnecessary goods that they cannot afford. Relentless advertising in the

media

and the easy availability of

credit

are the main reasons for

this

, and I believe it is the responsibility of governments to intervene and issue stricter guidelines to prevent irresponsible lending and to regulate advertising in the

media

. Advertising in the

media

has caused many

people

to go into debt. Clever marketing can lead

people

to believe they need something when in reality they do not, driving them to spend unnecessarily. Another reason that

people

are buying things they cannot afford is the fact that

credit

is easily available. Nowadays financial institutions make it widely known that anyone can get a

credit

card or a loan.

For example

, wonga.com has been heavily criticized in the United Kingdom for providing short-term loans at high interest rates that can be instantly sent to someone’s bank account after applying online. These practices could be curbed through government regulation of excessive advertising and unsound lending practices.

In other words

, if governments capped the amount of advertising allowed in the

media

and required applicants for loans or

credit

to prove that they have sufficient income,

people

would be under less pressure to spend recklessly and

also

would not have the means to do so.

For example

, in Germany, a person is not allowed to borrow more than 10% of their annual income in any one year, and if they do, the bank will be penalized with a heavy fine. In conclusion, rampant lending and excessive marketing have led to many

people

being burdened with debt, but

this

can be avoided if authorities regulate advertising and put in place proper rules that lenders must adhere to.