Issues With Credit Cards # Essay For IELTS

In many countries it is very easy to apply for and be issued a credit card. However, this causes some people some problems with debts they cannot pay back. Do the advantages of a credit card outweigh the disadvantages?

Write at least 250 words.

Answer

The world today has become a majorly cashless society and the use of plastic money has crept in. plastic money as one refers to it means the use of credit cards and debit cards instead of real paper money. Credit cards have made people’s lives easier since it has reduced the use of paper money to quite an extent which in turn has made the mode of payment simpler with just a swipe.

Many countries including India as well, most of the people have credit cards as they are very easy to obtain from the banks which issue them. People from all walks of life, be it a student, a businessman or even a homemaker have a number of credit cards with which they make everyday payments for something or the other. The best part about owning one is that a person does not have to carry cash all the time and is also less time consuming as no money needs to be withdrawn from the account for any payments. These days all kinds of payments can be done with a credit card via the internet whether it is shopping online or payment of bills. Even if people do not have sufficient money in their savings account, a credit card can be used for payment up to a certain limit.

Though a credit card may seem the need of the hour by many people in this seemingly cashless society, yet it may have certain repercussions like over spending. People, who are impulsive shoppers may spend money uselessly on items that are not required by them just because they have the capacity to pay via a credit card though they do not actually have the money. This created debs for such people which leads to the accrual of debts. The return of the money overdrawn on a credit card attracts an interest, late or non-payment of this will lead to this interest being added to the actual amount. Hence, people will fall in debt unable to come out of it which might also lead to legal consequences as well.

In can be concluded that a credit card does make life easier for people in terms of payment for purchases made in today’s era but one should be careful not to be too free in its use and have a frugal attitude towards its usage.

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