A lot of peoples use credit cards or loans to run up thier huge debts that they may be unable to pay back. Yes, it should be made more difficult for individuals to borrow large sum of money because they maynot spend it wisely.
Firstly, there are a lot of peoples who borrows loan form the bank or other financial institutions for various uses such as for running a business, household expenses, etc. Banks provide credit cards so that an individual could spend certain amount of money whenever they want, and it is limited. In this today’s generation, there are a lot of places to spend money we can spend it unnecessarily even though it is not so important for us.
Likewise, people are taking loans or using credit cards for borrowing huge amount of money to spend on unproductive sectors. Also, they borrow loans to go on holidays and buy liabilities which is not good for them. As a result, they could not repay the money which they borrowed and spend unnecessarily. Banks and other financial institutions should always research and give loans to spend on productive sectors so that a person will repay the loan which is beneficial for both of them. However, they should not give large sum of money even though they are investing on productive sector, there should be always a limit.
To conclude, this essay agrees that it should be made more difficult for individuals to borrow large sum of money as they could spend on unproductive sectors which is not beneficial and also could not repay it