Band 6+: Nowadays, it is easy to apply for and be given a credit card. However, some people experience problems when they are not able to pay their debts back. In your opinion, do the advantages of credit cards outweigh the disadvantages?

It is easier to apply for credit card and receive it today. Despite that, some people eventually are not able to pay off their debt and experience issues regarding credit cards. I believe the drawbacks of credit cards exceed its benefits because of high-interest debt.

Credit cards can have several positive outcomes and one of them has to be the ability to purchase things without having enough amount of money at the moment. Having paid bills on time, one is able to consume as much as they are willing to and even receive numerous benefits later on. For instance, by paying back all the debt, it is easier to get loans and better financial bargains in the future. Consequently, credit card usage can help to build a strong reliable credit story for further purchases and conveniently managed expenditures.

As for the disadvantages of using such bank card, it is noteworthy to point out the possibility of going into high-interest debt in case one does not repay the debt in due time. Alternatively stated, the longer a person does not pay off their balance in full each month, the more they owe, therefore having a high risk of getting trapped in obligation. To illustrate, if a borrower spends $1,000 on a credit card and only makes minimum payment each month, the interest accumulates quickly. As a result, if the card has a 20% interest rate, they end up repaying considerably more than how much was at the beginning, making it complicated to get out of the cycle of debt and harder to achieve financial stability once again.

In conclusion, I suppose that despite being able to consume a certain amount of money in month without having cash currently, high probability of running into debt seems to exceed any aforementioned advantages.