Today, a shopping pattern can be observed that a growing number of individuals utilise credit cards or bank loans without limitation to deal with personal debts that they can't afford. These consumers turn out to be so-called card debtors  due to impulsive shopping and inappropriate use if credit cards and loans. For example, quite a few consumers own a lot of debts and even go bankrupt just because they unwisely/irrationally make excessive purchases such as luxuries or mansions that they are unable to pay for. In light of such a phenomenon, as a result, some economic experts argue that the government  should enhance the criteria in an attempt to assist consumers reduce shopping desire and cut down on unnecessary expenditures so that those who are addicted to overconsumption can better manage their impulsive consumption, whilst others hold different/opposing views/beliefs.

Pros:

in terms of individuals/as far as individuals are concerned,

consumers will both cautiously and carefully put their salary/money to good use, arrange their financial expenditures and live on budget management. Besides, the extravagant /luxurious life styles would be discouraged.

in terms of the government/state/society,

a. to ease/alleviate financial burden of the government

b. to maintain economic stability.

e.g. American secondary mortgage loan problems caused its  economy to collapse/crush down.  

Handout Exercise 8 suggested answer:

It is likely that financial institutions are at least partially responsible for high levels of personal debt. In times when lenders are less tightly regulated and greater competition is allowed, there is a natural tendency ti try to attract more customers by making t easier to borrow money. Banks may choose to lend to people who have relatively low incomes or who already have high levels of personal debt. This practice may be sustainable up to a point; however, when the economy suffers and people lose their jobs, the situation can quickly reach acrisis point, as has been clearly shown in the "credit crunch" and recession experienced by many countries in recent years.

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