The debt trap always hits young people. It’s so easy to buy at pump and installments. As soon as you are 18 years old, you can take advantage of loans and contracts can be concluded on your own responsibility. This leads to inconsiderate expenditure and expensive purchases.
Cause and Effect
The consumption frenzy continues unabated worldwide. New online shops open every day, the electronics and technology manufacturers throw high-tech devices onto the market, whose absolute target group is today’s youth, who are also very familiar with them. But expensive technology comes at a price.
Reasons for youth debt
The following diagram shows the reasons for the debt of young people between the ages of 18 and 24. High consumer spending is the most common reason. As you can see here, too little income is by far the rarest reason for debt.
Brand clothing and lifestyle products are a priority for young adults and have long since replaced any kind of understanding of values. Why save long when the overdraft facility or a trainee loan, sometimes also the credit card, provide the money? It is all well and good until one day the repayment of overdraft or credit installments stalls or is no longer possible. Then the debt trap snapped shut.
A social or individual problem?
Both and – The daily greetings and that on all channels of the multimedia networked landscape. The customer has to have everything and the target groups are getting younger and younger. But only the target group from the age of 18 is really interesting, both for the banking sector and for the retail market, because with the age of majority the doors for loan agreements open and the risk of over-indebtedness increases. If income and creditworthiness meet the requirements, it is very easy to open a overdraft facility, a credit card or a consumer loan.
Young adults often lack sound housekeeping, the division of money and the realistic comparison of income and expenditure are non-existent. Money that does not exist is spent on things that only serve status. Real life falls by the wayside when rent, electricity and groceries can no longer be paid. Only then will many realize that they cannot bite a smartphone to satisfy hunger.
Avoid debt trap
The account permanently in the minus, monthly credit installments and the money not enough to live in the front and back – Unfortunately, this scenario is already a reality in many households. But it has to be prevented especially with young people, because they are the coveted customers of the consumer society.
Responsible upbringing in dealing with money and a way of life that does justice to one’s own financial means are the be-all and end-all. Money that does not exist cannot be spent, a loan does not solve the problem, but ultimately increases it through expensive interest only. Arithmetic is important, before every issue. Life is also worth living without the accumulation of unnecessary consumer goods and saving should come to the fore again in order to be able to fulfill wishes without a debt trap.