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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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1 comment:

max narziss demian said...

A very well written essay, I would very much appreaciate if could evaluate mine as well, thank you.

Nowadays, most of the people are suffering from debt management problems regarding credit cards. In a recent development, now banks've removed all the necessary formalities to apply and be given a credit card. Although, It is a known fact that this policy provokes strong arguments against it, banks have the support of governments on their behind.

To begin with, slackening/softening the credit cards application policies is a tricky move made by banks in order to delude people to the notion that, with the aid of a credit card, they can buy things which normally they can't afford. Furthermore, banks are promoting the use of credit cards to induce people that using credit cards is a regular way of doing their day to day transactions. Apart from the notion that, remaining indebted to the banks is not a wise practice, it is also not practical to spend the money you don't possess at the very moment. On the contrary, banks prefer their customer to be indebted, thus they will be able to profit from the interest money.

Secondly, inability to repay the money indebted puts many people into difficult situations. Most people who possess credit cards are regularly spending more money that they own, thus they are not able to manage their day to day finance without relying on credit cards anymore. Eventually, these people go bankrupt, and suffer from depression, anxiety, and on some occasions, commit suicide as a consequnce of their difficult economic condition.

On the other hand, credit cards have enabled people to handle their financial emergencies resulting from unexpected situations such as accidents or illnesses. As an example, due to an unforeseen illness, people may have to spend some amount of additional money that they don't have temporarily. Credit cards on these circumstances could be actually usefull for individuals.

As conclusion, common folk should be informed against the nasty policies adopted by banks to encourage them spend more than they earn. Additionally, people should also refrain from irresponsible spendings, and should take assistance from governments regarding financial management if it is necessary.