The reason that most individuals are in debit is due to the overuse as well as 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 debits. To what extent do you agree with this?
Sample Answer:
In today’s consumer-driven society, the use of credit cards has become increasingly common, leading to a significant rise in personal debt. While it is true that irresponsible use of credit cards can lead to financial difficulties, I believe that the responsibility ultimately lies with the individual, rather than solely with the banks.
It is undeniable that the overuse and irresponsible use of credit cards can lead to financial hardship for individuals. Many people fall into the trap of spending beyond their means, accumulating high levels of debt and struggling to make repayments. In such cases, banks issuing credit cards without fully assessing the individual’s ability to repay can exacerbate the problem.
However, it is important to recognize that individuals have a personal responsibility to use credit cards sensibly and within their means. Banks may conduct thorough assessments before issuing credit cards, but ultimately, it is the individual who decides how to use the card. Therefore, I believe that a balanced approach is necessary, with both banks and individuals sharing the responsibility for responsible credit card use.
Furthermore, credit cards can also provide benefits when used responsibly. They offer convenience, security, and the ability to build a credit history. Many individuals use credit cards for everyday purchases and pay off the balance in full each month, avoiding interest charges and maintaining a good credit score. In such cases, the responsible use of credit cards can have a positive impact on an individual’s financial well-being.
In conclusion, while banks should certainly assess an individual’s ability to repay before issuing credit cards, the ultimate responsibility for responsible use lies with the individual. By using credit cards sensibly and within their means, individuals can avoid falling into debt and instead benefit from the advantages that credit cards can offer.
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