LAST month, a report in your paper informed readers that, from June next year, cigarette manufacturers would have to print graphic warnings on their product packaging (”Graphic warnings for smokers from June” — NST, Oct 30).

This is understandable, considering the extensive damage done by cigarette smoke.

However, there are other dangerous and damaging things that slowly but surely eat into people’s quality of life, health and wealth. Among these unseen hazards is the habit of buying on credit.

The current world economic crisis, which has been identified as the worst ever, has its roots in the practice of extending credit without due consideration of the ability of the creditor to pay and the lending institution to honour the terms of the original agreement.

People have lost jobs, homes, families, hope and sanity, all because they used money that wasn’t theirs.

They not only hurt themselves but also caused harm to those around them, their immediate family members, relatives, friends and society at large.

In view of the enormous devastation brought on by the practice of buying on credit, I suggest that the government also asks banks and financial institutions to attach clear warnings to credit applications.

Prospective borrowers should be made aware of how credit will make them poorer, take away their freedom and eventually force them into jobs they have no affinity for, in order to pay off their debts.

Borrowers should also be reminded of how buying on credit increases the price of a product while decreasing its quality and how, by the time it is paid for, it will be old and worn and a new purchase will be necessary, thereby repeating the credit cycle.

Additionally, borrowers should be warned that the banks will not keep to the original agreement and in times of crisis, when it becomes most difficult for the borrower to repay the loan, they will not show any pity but instead charge more to make sure their profits are maintained.

The dreadful consequences of buying on credit affect both individuals and large companies, and so have a devastating effect on society in many different ways.

Corruption, crime, vice and sickness are all born out of the habit of buying on credit.

If people bought only what they had the money to pay for, many of mankind’s problems would immediately disappear.

Because of all that has been stated above, I believe the government and the people will be handsomely rewarded if they were to promote a culture of buying with cash.

Making sure that all loans come with a warning of the possible catastrophic consequences would be one way to deter people from borrowing money and so put themselves into a very stressful situation where taking up a vice, such as cigarette smoking, may be necessary to release tension.

M.B.A., Ipoh

Source: NST – November 30, 2008