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 provide relevant examples if any,  from your own knowledge and experience. Write at least 250 words.

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It is recommended that individuals should not be availed with large amounts of money easily by means of credit cards or loans so that this can prevent them from being debtors who are helpless to repay. Except in situations of extreme financial necessities, this suggestion is highly relevant.

The cardinal reason why I support the aforementioned recommendation is because of the increased number of personal debts by individuals in almost every modern society. To explain it further, credit cards and loan facilities pressurize a lot of common people in the society to borrow money irrationally in order to satisfy even their least prioritized needs. Many are seen buying properties and cars, by availing huge sums of loans, which they think they can repay without much difficulty. However, in numerous cases, they would not be able to do this within the timeframe and may result in depression and even in suicide.

This does not mean that people should be restricted from taking loans and availing credit facilities. It is necessary for a smooth economic growth of the nation. The question is whether it is justifiable to push people to the depths of debts. Indeed easy availability of big sums of money as credit is a key reason why people fail to have a good financial management, and therefore it is logical to make it difficult to avail such loans.

I need to admit that large amounts of money should be availed easily as loans to those who are in financial emergencies like in case of a medical emergency. However, this implies to a smaller proportion of people.

To conclude, though there are instances in which bigger sums of money are lent to people by financial institutions, it is quite rational to restrict this in normal cases, so as to prevent adverse consequences.