It is widely seen that borrowing money from various advanced companies as a credit card, or mortgage and buying a car on loan. It is argued that this trend has merits, while others oppose this idea. This essay articulates both perspectives along with my point of view in forthcoming paragraphs.
On the one hand, the benefits of having credit cards are maintaining status in a society and enjoying possessions before ownership. First and foremost, people who are financially unstable may acquire those items that they never thought of such as owning luxury cars and buying gold that assists them in their future, which improves their social status. Furthermore, owning luxurious cars by credit loan helps them to have possessions before ownership, since if they are unsatisfied with their purchase, they can cancel or resell it at any time. For instance, it is seen in developed countries like Canada, people who are unable to pay the mortgage, are free to resell the house to repay it.
On the other hand, the trend can be risky, because people who take loans have to pay more money as an interest rate in order to buy anything for a longer period of time. Thus, they may feel the overburden until it finishes. Moreover, they may go into debt due to lay off from their workplace that they may face in their life. As the installment is permanent, a job can be temporary for them. For example, it is observed by some people that taking a credit card of high limit results in using it all, which creates a worse situation for them to repay it.
In conclusion, although there are advantages of having credit cards and taking loans, however, as per my perspective, I believe that the drawbacks of this trend are way more than merits.