Bank services increase propensity to spend
Earlier there used to be a saying that one must spend only one third of what he has and save the rest till you get another whole just to follow the same cycle again and again. Savings used to be a very big part of our culture earlier but suddenly everything has changed in the savings market. People have started to invest instead of saving and putting the money in the banks. If not that people of this generation have become more accustomed to the idea of spending the money and live the life now rather than worrying about the future. This habit of ours have been hugely capitalized by the banks and various other people. Give a read to some of the schemes that have been introduced by the bank to increase your propensity to spend.
One of the most famous ways to increase the propensity to spend of a consumer is by offering them a credit card. With a credit card you have a limit to spend the money without even having the many in your pocket at the time. This way the bank earns by charging interest if you ever fail to pay your credit card bills on time and even charges you some amount of bank fees. Other famous thing nowadays is the Loan Singapore bank and other bank offers known as the best payday loan. In this service the bank gives you an amount of money before your payday to manage your expenses. With Payday loan Singapore bank has brought a very nice service to its customers who are in need of money before they have got their salary slip.
Through such ways banks have over a period of time made us to believe that we can spend more than the amount we earn.