We are living in a paradox: immersed in an excessive consumer culture, even as we drown under the weight of debt. Borrowing—whether through credit cards, personal loans, or “Buy Now, Pay Later” services such as Tamara and Tabby—has become normalized. It’s seen as a daily necessity and, at times, even as a form of “financial intelligence.”
Contrary to what some may think, this issue isn’t confined to the Arab or Gulf region—it’s a global phenomenon. Recent reports show that individuals born in 1996 and later carry an average personal debt exceeding AED 345,000, more than half of it due to credit card usage. Yet, only 3% of them own homes. “Buy Now, Pay Later” services are also extremely popular worldwide, used by around 62% of the same generation. Many young people believe they are using these services for free—only to be surprised later by hidden interest fees. Moreover, many stores raise their product prices when payment is made in installments through such services. In all cases, overuse of these services leads young people into irrational, excessive consumption.
What’s driving this? Social media is the primary culprit. It promotes a luxurious lifestyle, pushing people to purchase out of comparison, status-seeking, and the desire to follow trends and what’s “in.” A 2020 study found that conspicuous consumption is a major motivator for borrowing, especially among those trying to keep up with others.
But debt doesn’t only affect individuals—it burdens families. Many parents are forced to dip into their savings or work longer hours to support their debt-ridden children. In some cases, parents even take out loans to cover their children’s debts.
Debt has become a way of life for the new generation. But raising awareness and initiating fundamental change is only possible through education—teaching moderate and rational consumption. If saving the current generation seems out of reach, then at the very least, we must strive to protect the emerging generations.
And to conclude, I recall my late father’s words:
“True wealth is not in money or abundant possessions, but in being free of debt.”
