Question
Some people get into debt 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 having this problem?
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Answer
A rising tide of consumerism has swept much of the world in the past century, and as it is easy to get
a loan or a credit card, people are finding themselves quickly sliding into debt. There are many
reasons for this problem, and some potential solutions to it.
The main reason for the current abundance of debt is that people are living in a very materialistic
world, where they are constantly exposed to advertising and even gloating on social media. They
feel that they need to buy things because other people have them or because society demands it.
From iPhones to fancy cars, there is huge social pressure for people to buy expensive goods. Even
when they can’t afford it, banks advertise credit cards everywhere and companies offer payday loans
with high interest rates. It is very easy for people to borrow this money, and they soon find that their
debt piles up.
There is no easy solution to the debt problem, but some important steps need to be taken in order
to reduce the severity of the situation. Firstly, as always, education is important. High school
students should be educated in school about financial matters, and encouraged not to take out
credit cards or loans unless necessary. Governments should also set rules about interest rates and
loan advertisements in order to make payments more reasonable. There should also be limits on
how easily they can give loans to people, so that people cannot borrow more than they could ever
pay back.
In conclusion, debt is a huge problem in society partly because it is so easy to get into debt. Schools
and governments can take some steps to help solve this problem.
