Band 9 Model Essay & Analysis

Some people owe money because they purchase unnecessary goods that they cannot afford. Relentless advertising in the media and the easy availability of credit are the main reasons for this, and I believe it is the responsibility of governments to intervene and issue stricter guidelines to prevent irresponsible lending and to regulate advertising in the media.

Advertising in the media has caused many people to go into debt. Clever marketing can lead people to believe they need something when in reality they do not, driving them to spend unnecessarily. Another reason that people are buying things they cannot afford is the fact that credit is easily available. Nowadays financial institutions make it widely known that anyone can get a credit card or a loan. For example, wonga.com has been heavily criticized in the United Kingdom for providing short-term loans at high interest rates that can be instantly sent to someone’s bank account after applying online.

These practices could be curbed through government regulation of excessive advertising and unsound lending practices. In other words, if governments capped the amount of advertising allowed in the media and required applicants for loans or credit to prove that they have sufficient income, people would be under less pressure to spend recklessly and also would not have the means to do so. For example, in Germany, a person is not allowed to borrow more than 10% of their annual income in any one year, and if they do, the bank will be penalized with a heavy fine.

In conclusion, rampant lending and excessive marketing have led to many people being burdened with debt, but this can be avoided if authorities regulate advertising and loans.