To borrowing huge personal debts should be made more difficult for individuals because, many people are using credit cards or loans and they may be unable to repay. What are your opinion?

Nowadays it is common to see that, everyone have at least one credit card and it can perfectly fitted into daily life styles. However, whether to provide a huge loan to someone whose repayment ability is lacking, that is a debatable issue. In this essay will discuss the benefits of the usage of credit cards and its consequences to reach reasonable conclusions.

A credit card is very handy as in the case of emergency or when someone is out of cash. For example, a credit card can be used to pay for the emergency hospital fees, medical fees or ambulance fees. However, these services are coming at a cost. Individuals are required to pay for annual fees, services fees, transfer fees and interest fees for the use of credit cards, which are accumulated to the monthly payments. While the usage of the credit card can be beneficial in a certain situation; the payments reneged should be dealt in banks.

The banks have the authority to grant for individual’s credit cards by checking individual’s financial statements. Therefore, the banks and other financial institutions should be responsible for all doubtful debts. According to the federal government of USA 2015 statistics, credit card balances showed a rise for a 4-month-straight to hit the highest level since 2010. In order to protect from the potential doubtful debts in the future, thus, banks and other financial institutions should update on a regular basis their clients' credit ratings, which are based on financial reports.

In conclusion, a credit card can be useful for the modernized daily life, especially in the case of emergencies. All credit cards are being provided by the major financial institutions in order to meet its modernized daily life styles. A difficulty about repayments would be reconsidering with the structure of financial institutions by checking the financial statements of clients on a regular basis. By doing this, I believe that, the financial institutions could protect from the future financial crisis.