Why do consumers become overextended?

Consumers become overextended primarily due to a combination of unrealistic financial planning, impulsive spending, and the allure of credit. Many individuals may underestimate their expenses or overestimate their income, leading to a reliance on credit cards and loans to maintain their lifestyle. Additionally, societal pressures and marketing tactics can encourage impulsive purchases, resulting in debt accumulation that surpasses their ability to repay. This overextension often leads to financial stress and challenges in managing personal finances.