Sunday, 24 August 2014

Essay 46 (Credit Cards)





Nowadays it is easy to apply for and be given a credit card.  However, some people experience problems when they are not able to pay their debts back. In your opinion, do the advantages of credit cards outweigh the disadvantages?


Most banks today have reduced the formalities required for issuing a credit card but the inability to repay credit card debts has driven many into mounting financial difficulties.  Yet, I believe that this electronic credit facility is greatly advantageous to people, if handled with proper caution and prudence.

In the first place, credit cards have enabled people to handle their large financial emergencies without strain and pay back the money later in easy installments.  For example, if an individual has an unforeseen hospital expense as a result of an accident or illness he can use his card to borrow money without going to a bank or approaching another person.

Moreover, people can travel without mental stress or anxiety about any unexpected crisis.  For instance, people who travel abroad often experience difficulties like, unexpected cancellation, delay of flights and loss of luggage.  On such occasions people can easily make use of credit cards to pay the extra money they need.

Nevertheless, if people are not able to repay their credit card interest on time they could end up in serious financial troubles.  This usually occurs when people borrow money beyond their expected weekly or monthly income or engage in excessive shopping using this facility.  Besides, some people are less conscious about the amount of money they spend or the date of repayment.  The above points clearly show that credit cards cause financial liabilities when people use them unwisely or without discretion.

I summary, credit cards have proven to be extremely beneficial to people in terms of managing their financial emergencies.  If people use them with greater care, they can effectively overcome the negative impacts to a large extent.


265 words


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