The origin of this problem is the consumerist culture among people, encouraging them to buy goods in excess of their needs. This culture has promoted the extravagant lifestyle in modern societies through various ways such as social media and advertisements. Hence, individuals have an urge to splurge on trend-led products without considering their financial capabilities, resulting in people incurring debt. To counteract this problem, people can replace the minimalist culture with the throwaway culture, leading to a sustainable lifestyle. This minimalist approach encourages people to appreciate all things they already have and abstain from consumerism and impulse purchases. For instance, since adopting the minimalist culture, I have learned to avoid spending money on buying unnecessary items, allowing me to save more funds for emergency occasions.
The second cause derives from lack of financial literacy. Lacking adequate understanding of financial concepts, such as budgeting, saving, and management debt, individuals make impulsive decisions, leading to pecuniary problems. As an illustration, when receiving the first credit card, my friend was unfamiliar with how interest charges work, leading her to purchase unnecessary products and get into debt. Therefore, to raise awareness of monetary principles, people can use reliable sources to improve their financial literacy, empowering them to make informed financial decisions and thoughtful purchases. Take The Psychology of Money by Morgan Housel for example; it is a best-selling book in the realm of behavioral finance, helping individuals have smarter financial strategies and improved their relationship with money.
As has been said, by impulse buying people are at risk of incurring a large amount of debt. The roots of this problem flow from consumerism and financial illiteracy. But at the same time, some measures, such as embracing minimalist culture and fostering financial knowledge can be taken to combat these factors and lift people out of accumulation of debt.