Pros And Cons Of Credit Cards English Language Essay

Nowadays credit cards are of great convenience. Credit Card is a kind of bank plastic cards, which is tied to the personal account of the bank, which bank offers the customer with a credit line without filing liens and guarantees. AS a fact, to get a credit card is more complicated than a debit card as a credit card means the loan. Typically, a credit card issued by a commercial bank to obtain consumer credit for any urgent needs of the client, as this is the easiest option of processing the loan and the original amount of the credit facility is generally not very high. Credit card should be used wisely and cautiously.

The main advantage of a credit card is the use of the credit funds. If people receive a consumer credit, they must pay interest on a loan. A credit card is a convenient way to pay for the goods and services. As a fact, nowadays people pay no more attention to the cash money, as they have credit cards. If a person does not like to ask to borrow money, banknote may be fall-back option in case before the wages are not enough money. A credit card is absolutely indispensable when booking a hotel or car rental. In such cases, the correct amount is not deducted, but only blocked on the client’s account. Interest on the amount of lockable is not charged. As disadvantages, there can be attributed the restrictions set by the bank for cash. The disadvantage of credit cards is that not all outlets accept credit cards to pay for their goods or services, but all more or less large retail chains can pay by credit (and debit) card. With a credit card, you can withdraw cash using the ATM network of any bank. True to withdraw cash on credit cards have limitations, but you can always get the remaining amount to another ATM or in the same, by entering your card and pin code again. [1]

In the banks, credit card processing practiced as part of the contract to the target consumer loans, for example, when you make a loan to purchase home appliances. In the loan agreement the conditions for issuing credit cards are specified and the whole mechanism of its transmission to the client, for example, after full repayment of the first loan. Often there are situations when people get credit cards in the mail, it is outraged, believing that the bank simply imposes his card. And not to fall into such an awkward position – should carefully read all the terms of any credit agreement are signed. [5]

The money people all over the world spend using credit cards, does not actually exist. It should be noted that the money has gone virtual and there are a lot of cases of cheating and hacking of the credit cards, as the whole system is not perfect. As a fact, credit does not do any good, as there emerge many different problems caused by the credit cards and the taken credit, when people purchase a lot and become shopaholics.

Consequently, nowadays to survive and to live comfortable life, people us credit cards to buy different things, from a pen to a flat with the help of a credit card. For that, everyone needs a stable highly paid job to cope with the difficulties arising. And many people live in debt while shopping constantly and purchasing plenty of unnecessary things. Debt is the latest concern in our society and there should be found a solution to the way of spending money. Individuals and governments are struggling to cope with the debt and offer different options to solve the problem. Also, marketing credit card companies have had to stop towards high school and college kids in order to help keep them out of debt before graduation, as there is very high percentage of people living in debt and have no way out. Nowadays it is a severe problem for the people all over the world, who use credit cards and who constantly have a temptation to purchase goods, even if they don’t need them. And especially this problem is about adolescents who do not work yet and already have an access to the credit cards. [3]

Either way it should be remembered that buying goods with the credit card, we hereby affirm the agreement to buy the goods at a price much higher than the real price of the product itself is. This is called “I want it now”, that further includes paying more for the goods. It remains only to compare the size of this proportion with the rate of inflation. Everyone knows that credit stimulates consumption and, consequently, production. But any loan borrower must provide certain guarantees on their credit obligations. Excessive credit entails a chronic excess of the rate of consumption over the pace of increase in income of the loan borrowers – and, therefore, guarantees taken credit obligations. Imagine for a moment that all that you are using was purchased on credit. The car, which you navigate to work and shop, as well as TV, refrigerator, furniture – everything bought on credit, and often this is added to the most important – apartment on credit. Your only guarantee your monthly salary. Of course, you have no savings, because almost all of your wages goes to pay for the credit for those things that you use. Such loans are called sub-prime. This is the way most Americans live. Now imagine for a moment that you or someone from your friends lost their jobs. The next day in front of your house there would be a queue of creditors to declare the guarantee or to pay obligations. You are nervously looking for decent jobs with wages sufficient for your monthly payment obligations. If you do not pay for the credit on time, on your account penalties are applied. In the worst case, your property is started with a hammer. But imagine this same situation, but only on a global scale. You cannot pay off the loan, your property is auctioned, but no one at the auction would buy it, because the neighbors of your neighbors would be in exactly the same situation. Automatically starts the crisis in the banking sector, falling demand, and, of course, there comes a decline in production. [2]

Time flies very quickly. Think about it: not so long ago, buying something on credit could safely assume “status” act. Now buying on credit is a commonplace, routine activity, nothing to do with the “advance”. All kinds of people do it, often without thinking about consequences. It is no secret: take credit when you do not have enough money to have the right to pay the entire purchase (for the washing machine, a car or a new apartment). So from a rational, practical point of view a credit is a direct alternative to hoarding.

Credit stimulates consumption, and thus serves as an additional battery for the production. Credit is just the ideal solution for implementing the words “I want it right now”. But the total loan creates the illusion of an exaggeration of your financial opportunities. Some people are so accustomed to use credit cards that they often fail to notice how quickly their red account balance reaches the size of the monthly salary. [4]

Today it is too difficult to stay away from the banks and credit, since we live in an age of capitalism. And if we live, therefore we adopt the rules of the game that the banks set. Banks rule the world nowadays. If you want an apartment – take the credit, you want the car – take the credit, you want a great vacation – you are welcome! Take a credit voucher. And if you save for the same things without taking a credit, is there any sense to rejoice over it in old age? Credit for today for the majority nowadays is both the way out and the prison…

Interest loan lately is very crucial. Now with a credit card a person can buy almost everything – from simple TV and mobile phone to a car, apartment and a country house. There is no dispute that credit is extremely convenient and profitable invention of mankind. But, as says the popular proverb, every cloud has a silver lining. And vice versa.