WRITING TASK 2
You should spend about 40 minutes on this task.
Present a written argument or case to an educated reader with no specialist knowledge.
Write about the following topic:
Many people are in financial hardship due to their irresponsible use of credit cards. Therefore, banks and other financial institutes 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 or disagree?
Give reasons for your answer and include any relevant examples from your own knowledge or experience.
Write at least 250 words.
In today’s consumer-driven society, credit cards have become a common tool for managing finances. However, the misuse of credit cards has led many individuals into financial hardship, raising concerns about the responsibility of banks and financial institutions in issuing credit cards. While it is important to consider the potential risks associated with credit card use, completely restricting access to credit cards based on an individual’s ability to pay back debts may not be the most effective solution.
It is undeniable that irresponsible use of credit cards can lead to financial difficulties for many people. High interest rates, late payment fees, and the temptation to overspend can quickly spiral into unmanageable debt. In such cases, individuals may find themselves struggling to make minimum payments, leading to a cycle of debt that is difficult to break free from. This not only impacts the individual’s financial well-being but also has broader implications for the economy as a whole.
Given these concerns, it is understandable that there is a call for banks and financial institutions to exercise caution in issuing credit cards. Assessing an individual’s ability to pay back debts is a responsible practice that can help prevent individuals from taking on more debt than they can afford. However, completely restricting access to credit cards based solely on this criterion may not be the most effective approach.
It is important to recognize that credit cards can also serve as a valuable financial tool when used responsibly. They offer convenience, security, and the opportunity to build a positive credit history. For many individuals, credit cards are essential for making online purchases, booking travel accommodations, and managing day-to-day expenses. Completely restricting access to credit cards based on an individual’s ability to pay back debts may unfairly penalize those who are capable of managing their finances responsibly.
Instead of a blanket restriction on issuing credit cards, a more effective approach may involve providing financial education and guidance to individuals. Banks and financial institutions can offer resources to help individuals understand the responsibilities and potential risks associated with credit card use. Additionally, implementing stricter criteria for issuing credit cards, such as income verification and credit history assessment, can help ensure that individuals are not taking on more debt than they can afford.
In conclusion, while the irresponsible use of credit cards can lead to financial hardship for many individuals, completely restricting access to credit cards based on an individual’s ability to pay back debts may not be the most effective solution. Instead, a balanced approach that includes financial education and stricter criteria for issuing credit cards can help promote responsible credit card use while still allowing individuals to access this valuable financial tool.