IELTS Writing Task 2 Sample 482 - Many people are using credit cards or loans to run up huge personal debts
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IELTS Writing Task 2/ IELTS Essay:
You should spend about 40 minutes on this task.
Many people are using credit cards or loans to run up huge personal debts that they may be unable to repay. It should, therefore, be made more difficult for individuals to borrow large amounts of money.
What are your opinions on this?
Give reasons for your answer and include any relevant example from your knowledge or experience.
You should write at least 250 words.
Sample Answer 1:
These days a lot of individuals are tending to use various kinds of banking services: ordering credit cards, opening bank accounts and loans of different personal purposes. Some people argue that banking operations should be more complicated for customers. It should be unreasonable to suggest it is partly fair to impose some obligations and restrictions on those who are in need of such services.
To begin with, banks ought to inform people if they wish to lend a large quantity of money, they will be obligated to compensate a higher interest. All kinds of banking establishments have to make certain policies to avoid misunderstandings with customers and lessen uncomfortable situations related to using credit cards and loans. Therefore, representatives of above-mentioned institutions play a crucial role in explaining individuals about their rules. Workers have to forewarn of the consequences of disobeying the points of their rules, for instance, opening a criminal case.
Banking establishments need to take into account personal factors of the members of society. There should exist different rules for various customers. The members which use the services of the bank for longer periods of time or who have obtained the premium type of card should not be limited in time for repaying debts. They have shown themselves as trustworthy customers and deserve to be treated accordingly. It will stand in good stead for the establishment as well. It will unquestionably add prestige because the bank trusts and values its clients.
One could draw the conclusion that banking establishments have to take into consideration personal factors of the individuals when creating their policies. Credit cards and loans have to be provided by the bank with limitations for certain members.
[ by - Anastasia Shytina ]
Sample Answer 2:
In today’s modern world, it is certainly true that most people own at least a credit card. Some may even have four to five credit cards which eventually cause them to run up huge personal debt. Some people are of the opinion that government and banking authority should make it harder for individuals to borrow large amounts of money and I strongly agree with it.
There are several reasons why it should be less easy for people to borrow money. To begin, a huge personal debt will probably increase their burden. Even though they may be worked harder in order to earn more money to clear off their debt, it is always not a simple task for them. According to the statistic from a well-known bank, it has shown that more that 65% of the people are unable to repay which may be partly due to the high-interest rate they have to deal with. As a result, many of them, especially those aged below 30, may choose to end their previous lives by suicidal which we are constantly confronted with newspaper or many of them commit the crime to gain some money.
Apart from that, the individuals are too materialistic nowadays. They borrow the money from the bank and use it to buy things to satisfy themselves. They think that the more things they own, the happier they are. Therefore, the government should make the procedures to borrow money much more complex in order to avoid the people to get into debt. It is believed that the attitude of people being too materialistic will change as long as there are crucial and effective measures that can be taken. Eventually, the problem of running into huge debt can be prevented.
In conclusion, there are numerous people who get into large debts due to overuse of credit cards or loans which most of them have not the ability to repay. However, if the government can tighten the rules in the procedure to borrow money from the bank, this problem can soon be coped. I believe our country will continue to prosper and flourish if this problem can be solved in the years to come.
[ by - Lee Wing Qeen ]
First of all, the credit card is a tool to pay for many items but is paid using credit from the bank and not with the customer's own money. Unfortunately, some people cannot pay off the loan, and as a consequence, fall into further loans and monetary traps. For example, I have a friend, Lilian, and she used to use credit cards to shop for so many items each month. After a few years, her credit card loan mounted to such a high position that she could no longer pay the amount. As a result, she had to face severe consequences including selling her house and facing jail terms. Had she not been allowed the high credit limits on her cards and had to pay from her own purse, she would have been more careful about spending such an amount per week only for shopping. Similarly, if Lilian had financial knowledge, she might have not passed for this difficult situation.
It is believed that banks and other financial institutions are always careful when offering a loan or credit to someone. But this is not always the case especially for credit cards as students with no tangible income are offered student credit cards which might jeopardise their economic condition. This is why such financial authorities and the government should make and implement policy so as to not trap people in debt by offering compulsive shopping tools.
In conclusion, the credit card is an easy tool to buy anything, however, it is a trick if you do not control your expense. Financial education can help consumers make an informed and wise decision while the government and authorities have their share of responsibilitie s as well when it comes to offering loans and credit cards.