Question

Why do so many people borrow money for large purchases instead of using sinking fund?

Answer 1

Most of the people borrow money for large purchases instead of using sinking fund because for immediate money requirement borrowing money is an easy thing and time effective way whereas sinking fund requires pre planning and it takes time but it is also a safe and efficient way for clearing the debts.

Answer 2

sinking fund is a special account that we made to reduce the liability from our bonds.  In order to use it, we set up an account specifically used to re-purchase the bonds that we issued.

Sinking fund can be used only if the owner of the sinking fund able to re-purchase their liability. (such as using bonds)

Sinking fund requires a lot of time and  planning  but it is also a safe and efficient way for clearing the debts.

Since people in the world do not possess the ability to create bonds, they choose to borrow money for large purchases instead.