The reason that most people are in debt is the overuse as well as irresponsible use of credit cards. Banks ought to do a background check and only issue credit cards to individuals who have the ability to pay back their debts. What is your opinion?

During the past decade or two, there has been a rapid increase in the usage of

credit

cards

.

However

, unfortunately, not all the card owners are clearing the

debt

.

This

essay completely agrees with the statement that

banks

need to do stringent checks before issuing the

credit

cards

.

This

essay asserts the opinion stated using two reasons

first

, customer spending money lavishly, and

second

,

banks

not doing relevant background checks before issuing the

cards

.

To begin

with, cardholders spending money extravagantly could always be a threat to pay post-paid card bills.

For example

, if an employee buys a very costly car than a normal car, in a desire to lead life comfortably that could be a possible reason to not pay the

debt

in time. Here, it is understood that employee in rush to lead life conveniently, is trying to spend recklessly by buying a car whose price is exorbitant. If people think pragmatically, these things can be avoided and there will be fewer

debts

. Moving on to the

second

reason where user

debts

can be reduced is, by doing strict and relevant checks of user-profiles for whom the

cards

are to be issued.

For instance

,

banks

usually offer

credit

cards

based on the employee's payslip or salary, but the risk here is if the person loses his job the

debt

remains in the backlog. If

banks

form more stringent rules like agreeing to some legal conditions in case

debt

is not paid, people will become more serious and tend to pay bills. To conclude, the excessive usage of

credit

cards

leads to

debts

in

banks

.

Therefore

, it is obvious that there is a need to clear these

debts

. Upon thorough analysis on

this

subject, it can be said that

this

scenario can be avoided by customers spending frugally and

banks

inspecting user-profiles and establishing rigid rules.