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?
You should spend about 40 minutes on this essay writing task and write at least 250 words.
Band 9 IELTS essay sample
Careless and irresponsible use of credit cards push many people into debt. Some people, therefore, argue that banks should ensure the customer’s ability to pay off their debts before issuing credit cards to them. I agree with this view. While I insist that banks should check the credit history of a person before offering them credit cards, in my opinion, this may not always help because the financial stability of a person can change any time. So there is no way banks can fully verify the repayment capacity of the customer.
Irresponsible use of credit cards can push anyone into the debt trap. Still, the demand for credit cards continues to increase. People consider credit cards as a means to improve lifestyles. They borrow more money than they should 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 customer. They always check the credit history and financial situation of the customer and also explain the burdensome consequences that can happen to the customer if they use the card irresponsibly. Still, many people use the card carelessly and get into permanent debt. So it is unfair to blame the bank alone for the credit card holder’s mistakes.
Another factor that we need to acknowledge is the unpredictable nature of a person’s financial situation. People can fall ill or lose their job. Both of these are situations that can considerably affect a person’s ability to repay his debt. In most cases such situations cannot be predicted and are not in the control of either the bank or the customer.
To conclude, it is important for the banks to verify the customer’s ability to pay back debts before giving them credit cards. Customers also have a responsibility to control their spending habits to protect themselves from debt.