Nowadays, more and more people use credit cards. It seems that cash and coins will be replaced by credit cards in the future. Is this a positive or negative trend?
With the development of the financial industry, we have entered the consumption era when people are able to use credit cards. While some people argue that the introduction of credit bring about benefits to consumers, I believe that the popularity of relying entirely on credit cards is a negative trend, with causing detriments to society,
On the one hand, the credit cards will result in social problems. Firstly, the rate of personal bankruptcy will be on the rise. The compound interest policy is so complicated that many people may be unaware of having been charged lots of money, which certainly speed up the personal bankruptcy. Secondly, the credit cards is also the culprit of consumerism. The excess consumption, as a result of using credit cards, weaken citizens' self-regulation, stimulating people to spend a fortune for instant gratification, with no regard to their own financial circumstances. Lastly, credit card holders are more likely to lose money because of card thefts. With the computer hackers who make cyber-crime possible, our fortune in the credit cards are more likely to be stolen without any sign, compared with paper money.
However, credit cards also has its merits, including convenience, the reward packages and the function of the cash advance. The chief benefit is convenient because of its small size. Without having to carry a bunch of cash in our pocket, we can pay bills simply by swiping the card. Furthermore, most of credit card offer us benefits packages. For example, we can enjoy discount in the supermarket by using a certain credit card. Another advantage is that we can overdraft in advance when our cash is tight, with credit card enabling us to borrow a large sum of money from banks. Stories abound in which an entrepreneur rises money by using credit card borrowing money in order to make a bigger deal.
From what has been discussed, although there are several benefits for using credit cards, the cards will do more harm than good to people in the future because it will lead to personal bankruptcy, hyper-consumerism and money security problem.
Hi Colin,
This time I avoid your introduction ;)
Firstly, the rate of personal bankruptcy will be on the rise.
Excellent!.... You have very good points and you present them very effectively :)
However, while you discuss many negatives of credit card usage(reasons), you do not provide specific examples to support them. For this task you would earn marks for your examples. Therefore, my suggestion is to limit your reasons, preferably one reason per para and give a solid specific example for that. For example, you say;
Firstly, the rate of personal bankruptcy will be on the rise.
then, expand on this by giving a some specific example;
For example,
most of the time I come to know about my lavish spending, which puts me in trouble very often, only when I get the credit card statement to my hand. Had I paid those bills with cash without using the credit card, it would have prevented me from the temptation for buying things that goes over my budget.