Band 6+: The increased availability of consumer to credit in some countries has contribured to the problem of debt. Who is responsible for the high level of indebtedness: the financial institutions that lend money or the individuals who borrow money?

Nowadays the amount of affordable bank borrowings in several parts of the worls has grown which influenced the number of people who have obligations. So the question has arisen whether the responsibility for this situation lies on credit organisations or on loan takers themselves? To my mind, it is the borrowers who should be considered to be the reason of the discussed problem.

To support my opinion, I will present some arguments along with examples. Firstly, a modern person is quite an intelligent being who is responsible for his/her actions. It is not an easy process to receive a credit as the procedure is rather a serious one, so clients are able to change their opinion and stop at any point, but they, mostly, do not. That is understandable, because loans are usually used to make an expensive purchase which makes one’s life better. For example, my aunt borrowed a large sum of money 2 years ago in order to buy an apartment for herself and her children. She understood the consequences, but nevertheless proceeded. Such cases are not exceptional today, that is why the debt situation, unfortunately, only gets worse.

Another argument is that banks do not give out cash to everyone. In order to take credit one should meet a number of requirements, one of the most significant is the ability to pay back the received sum. Due to this fact it is rather complicated for such categories as students or the elderly to get money from monetary funds as those people are not financially stable, in most cases. Owing to that fact, the number of debters reduces slightly. Speaking from personal experince, I tried to take out a loan a little less than a year ago. Bank declined my application as I do not have a job or any other source of constant income.

To conclude, people have numerous reasons to apply for a credit,it is the main reason of the rising level of indebtedness. Although it is a controvercial topic who to blame for the situation: people or banks. In the essay I presented some reasons to support the opinion that it is the responsible party is the humanbeings, not the financial institutions.