Some people get into debts 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? v.2

For more than centuries, man was happy to just fulfill his wants, particularly food, shelter and clothing. However, in the modern era, many people are aiming for needs, especially personal. Often times these needs are unessential and still bought at high risk. Most of the pleasure is at reach to many, thanks to the introduction of leasing and credit cards. With these, the term ‘affordability’ is out of question. As a result, no one is taking a step back while thinking about buying a product. In addition, advertisements too are grabbing the attention of buyers in a significant manner. Particularly, some of them promote EMI’s and zero interest credit to lure customers, and many times they are successful. But what are the consequences? Knowingly or unknowingly, many consumers face debts that sometimes may lead to adverse ramifications. Alongside buyers, banks and financial institutions too will face the effects. A good example is 2008 recession, where many banks in USA ran in to huge losses following unpaid home loans by its customers. The main problem however is the lack of awareness among public about the serious effects of such investments. In order to prevent such uncalculated risks, measures must be taken to raise awareness among people. Also, one must learn how to manage his budget in order to get a balance between necessity and pleasure. Keeping a ledger of income and expenses monthly would be very helpful and gives an image of how his budget should be spent. All summed up, the chances of becoming a victim of consumer’s society are high nowadays due to the surrounding temptations but his problem could be easily avoided by being aware of the dangers and having a rational attitude when dealing with money.