The reason that most individuals are in debit is due to the overuse as well as irresponsible use of credit cards. Banks should not issue credit cards unless they are completely sure of an individual’s ability to pay back their debits.
To what extent do you agree with this?

In

this

modern word, almost all the processes has

gone vir

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have gone

tual, payment and selling are not the exception.

Cred

it

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A credit card

The credit card

card

which is well-known as one of the plastic money gives purchasing power to the person even if he or she does not have enough cash.

This

has made peop

le extravagant and

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people, extravagant

put them in debt

which cau

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debt, which

ses dangerous consequences for both people and the

card

issuer. To resolve

this

problem, the bank should check the history of the applicant’s

credit

records before issuing

this

facility.

To begin

with, as people could purchase without thinking the price and the income, they become imprudent and would purchase the things which they might not need.

This

tendency of the consumer increases liabilities and make

the

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makes

m bankrupt.

Also

, the citizen are not conscious about

credit

limit and due date of the payment.

This

means they will have to pay heft

y premium of

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a hefty premium

hefty premiums

the interest which is more than any loan like home

loan or

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a home loan

home loans

vehicle loan. As they end up without the money, they might not be able to compensate.

Thus

,

credit

card

certainly brings a failure if not used judiciously.

This

failure affects the economy of the country as a financial institute and its stakeholders are harmed economically. Owing to the customer under high

ly deb

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high

it who does not have enough liquid to pay back, the bank would have to use external forc

es like deb

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forces, like

t collection agency which may use wron

g ways for

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the wrong ways

such

repayments.

This

could make the negative publicity for the organization and its stock price may fall.

On the other hand

, the ruined patriot

also

suffers financially and mentally.

For instance

, the one who cannot repay may lose its property and capi

tal which dis

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capital, which

turbs him economically and psychologically. Under

such

pressures, person may attempt to suicide.

Thus

, these disastrous consequences insist a background check by the financial agencies before providing a

credit

card

. To conclude, I strongly believe there should be a stringent rule by the company to provide the

credit

limit below the salary.

Such

rules ensure win-win situation for both the corporation and customer of the

credit

card

.

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cards