Many people fall into the trap of debt by purchasing materialistic things which are not necessary and out of budget from mortgage. There are variety of reasons, for being attracted by loans and EMI’s. Some actions can be implemented to reduce debt over the individuals will be discuss below.
To begin with, there are several unawareness amongst society for loans and EMI’s are very common. Due to this unfamiliarity, individuals find loans to fulfil unusual things and attract by the advertisement which popups in mobile phone and T.V, as well as banks offers frequently to get loan by phone calls, that they provide 0% interest for some months, through this people fall in this trap. Another reason could be through easy access to such things like EMI’s and loans, some companies do not even check background of people, weather they are capable to repay or not, this can cause people to buy more materialistic thing. For instance, one of my friends who took the loan which was offered by bank and then he was unable to pay, he gets into stress.
However, multiple things could be done to prevent debt like, from young age, people must get proper financial education about banks and loans, through private classes or schools and colleges can add into curriculum as extra education for students benefit. To save from the bank traps, government need to involve in this, for instance they have to set a limit to call client for taking EMI’s. Ones should learn money management to get out of debt and awareness about finance for future. Secondly, for the banks, they should give proper credit to the person who is reliable or can repay the EMI’s.
In conclusion, banks and companies are responsible for creating debt over society through advertisement as well as phone call, to resolve this problem social awareness much be develop amongst people.