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?
We live in a competitive society where
people are constantly buying new products in order to keep up with the latest
trends. Unfortunately, many people borrow money in order to buy products they
can’t afford and perhaps don’t really need, putting themselves in financial
difficulty.
There is a lot of pressure in society to keep up. We are
bombarded by advertisements on a daily basis and pushy companies trying to sell
their products. Technology is constantly
being updated and to stay ahead consumers purchase the latest products even
though what they are using functions well. People are also influenced by image
and status believing that wealth is something to be displayed so they purchase
large houses, expensive cars, yachts etc. without having enough money to pay
for these luxuries thus running into debt.
The banks might get involved in this case and only give
loans to clients who need the capital to start a new business or finance their
first home. They will also need to ensure that a person has enough income to
afford a luxury product and to be able to cover the interest rate or repay back
their bank loan. What is more, the government can try to limit the amount of
wealth someone owns by placing heavy taxes on luxury goods.
However, despite these measures, I believe it is very
difficult to control a person’s spending. This is a personal choice and consumers
will continue overspending, buying the newest products and seeking luxury goods
to display their status in society.
The Official Cambridge Guide to IELTS for Academic and
General Training p.317
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