People today are able to take out loans from the bank or get a credit card very easily. What are the advantages and disadvantages of this practice?

"

Money

makes the world go round" so goes the old adage. In order to be at par with the increments in goods and services in

this

day and age, people need to have sufficient funds laying in their accounts.

However

,

that is

not the case with everyone as many earn more than they can spend.

As a result

, many have acquired

credit

cards or loans to resolve certain demands.

This

essay will tackle both the advantages and disadvantages of taking

this

route. Two reasons are advantages that make many people want to get a

credit

card

or

loan

.

Firstly

, due to the increment in the standard of living around the world, many people can not manage to buy the needed items using just

money

earned from a single source of income.

Therefore

, when

one

gets a

credit

card

or

loan

, he is able to care for all his needs without a problem. To illustrate, a

person

who earns $20 in a city whose standard of living requires an individual to earn at least $60, he can manage that by acquiring a

loan

or

credit

card

. The

second

reason linked to the

first

is that when times of need arises during an emergency, having a

credit

card

or

loan

makes it easy for

one

to attend to the problem with ease.

For instance

, if

one

gets sick and medical bills that should be settled in more than he can pay,

then

the

credit

card

or

loan

comes in handy.

On the other hand

, a

loan

or

credit

card

comes with some disadvantages as will be discussed.

Firstly

, the

money

a

person

gets through these means has to be paid back to the bank either wholly or partly.

For example

, when a

person

borrows $67 he will be required to pay back the debit monthly which will mean having regular deductions from his meagre salary

hence

further

financial burdens.

Lastly

, the resulting debit

one

bears from the

credit

card

or

loan

will be higher than the original amount

initially

borrowed. Take,

for example

, if a

person

gets a

loan

of $50 ,he will have to pay back with interest an amount of not less than $90 which

further

forces him to get more

credit

cards or loans. In

this

way,

one

lives a life of slavery till he pays back the full amount

initially

borrowed from the

money

lending institutions. In conclusion, having a

credit

card

or acquiring a

loan

has both the benefits and the undesirable effects that

one

needs to weigh in advance. With that said, each individual should work hard to make ends meet in life.