It is believed that credit cards can lead users to fall into debt due to overpaying for unnecessary requirements. From my perspective, I firmly support this statement.
On the one hand, it cannot be denied that credit cards are beneficial for both individual and the economy in general. Regarding users’ advantages, this type of payment can help people being short on cash purchase products immediately and cover unexpected expenses like medicines or car fix costs. Consequently, residents’ spending, especially in metropolis is substantially promoted due to the fact that credit cards reduce the habit of rethinking about the necessity of the products. The increase in customers’ demand is likely to encourage productions, forming new factories to meet enough consumers’ need, which can open up new job opportunities for laborers and boost the economic growth.
On the other hand, when credit cards are not used efficiently, it can lead to undesirable consequences. One of the most serious problems is that cardholders can be put under heavy financial pressure if they cannot pay enough money for the credit cards on the due date. This situation often stems from overspending on unessential products and services. As a result, people have a tendency to borrow money from their friends or relatives, which again traps them in the cycle of earning income and repaying their balances. In terms of lenders, organizations releasing these credit cards can suffer from a large number of customers being not capable of clearing their debts. This can have a negative impact on their revenues, creating financial burden on paying employees’ salaries or even lead to corruption if the profit cannot be maintained
In conclusion, although credit cards can help people solve immediate budget problems, promoting the economic growth, I believe they should be utilized more precisely and reasonably as it can cause cardholders to fall into debt and affect the lenders profits.