You should spend about 40 minutes on this task.

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

Give reasons for your answer and include relevant examples from your own knowledge and experience.

Write at least 250 words.

It is common to see that many people are spending money on buying unwanted and expensive items and passively inviting debts. The main reasons behind this are external in nature, and it can be prevented by proper awareness campaigns.

The primary reason why people tend to buy such products is because of the influence of advertisements. To be precise, today’s marketing strategy is more competitive and complex in nature. Companies conduct researches on the behaviour of specific group and create a favourable environment before launching a product. Thus they could create a fake demand for the product even before it hits the market. They also persuade frivolous buying by portraying celebrities as their brand ambassadors.

The second reason why people tend to buy these products is because of the increasing influence of materialism. For example, if a few in the society buy luxury cars, others feel they would be inferior in the society without possessing it. Hence, even if they have a car, they would go for the purchase of this to uphold their social status. Another factor behind this is the easy availability of credit facility for buying such products. Attractive equated monthly instalments are available for products which the common people cannot afford to buy instantly.

The only practical solution for this is to educate people regarding financial management. This can be done as early as possible, preferably at schools, so that there would be fewer spendthrifts in the society.

To recapitulate, it is obvious that external factors such as advertisements, materialism and easy credit facilities are the major attributing factors which persuade people to spend exorbitant sum on unwanted things, and this behaviour can be discouraged only by proper awareness regarding appropriate spending.

Word count: 286