The following is an essay submitted by one of our students.
The reason that most individuals are in debt is due to the overuse and irresponsible use of credit cards. Banks should not issue credit cards unless they are completely sure of an individual’s ability to pay back their debts.
To what extent do you agree with this?
Band 7 IELTS Essay Sample
Many people get into debt due to the careless and improper use of credit cards.Therefore, some people believe that banks should ensure the customer’s ability pay off their debt before issuing them credit cards. I partially agree with this assertion. I believe that the financial stability of individuals can change any time. So ensuring the proper use of credit cards is beyond the control of banks.
To begin with, people consider credit cards as a means to improve lifestyles or to borrow money for business. They tend to borrow a large amount of money than they actually are supposed to as the credit cards are easy to use and readily acceptable in so many places.Unfortunately, some people cannot pay back the debts and get into huge financial trouble. Banks usually won’t issue credit cards if they are not completely satisfied with the finances of the people.They often check the income level and the loan history of individuals and explain the burdensome consequences that can happen to the customers before issuing a credit card. However, some people carelessly use credit cards and get into permanent debts. So it is unfair to blame the bank for the credit card holder’s mistakes
However, we have to acknowledge the fact that financial situation of anyone can change any time. It cannot be predicted. Usually credit card holders are rich. But at some point they may not be able to pay back the borrowed money due to the challenges in their finances. In this case bank’s calculations can be wrong. As a result, people go into debts. I believe it might be helpful if the bank reminds their customers through text messages or emails when they are overusing the credit cards. It discourages people from further use. Apart from that customers should be able to use their credit cards wisely for their financial well being.
To conclude, it is important for the banks to verify the individual’s ability to pay back debits before giving them credit cards. However, I believe citizens are also equally responsible and use their cards carefully to protect themselves from debt.