It has become very common for people to borrow money. Most people have a Credit Card, a mortgage and often they will buy a car on credit as well. Is this a good idea is it too risky? Discuss both views and give your own opinion.

Nowadays, the borrowing of funds has become easier than past. Now,

people

have

credit

cards

and they can take

loans

from banks to buy property or cars. Some

people

think that it is too risky to take

loans

and some are in favour.

This

essay will discuss both views in the forthcoming paragraphs.

To begin

with, many

people

believe that

loans

take an individual into debt and they are not in the favour of

credit

cards

.

For instance

, one of my friends takes a

loan

to purchase a car from a bank. His monthly salary was 70,000 and the instalment of the

loan

was 35000. In the beginning, it was a smooth process of instalments later during COVID, he suffered a lot. He lost his job and

then

the bank manager took his car and said within the given period of time settle down your mortgage

otherwise

they will sell their car. It was really a harsh situation for him. From

this

view,

people

are afraid to take

loans

.

On the other hand

, some

people

and I believe that

loans

or

credit

cards

are beneficial to purchasing a home or installing a new company. I think proper planning proves beneficial for us.

For instance

, In 2012, I took a

loan

to establish my own factory. I made planning on how I will return

this

loan

. Everything was going in planning and in 2020 I paid all amount in instalments now I have my own factory worth rupees two crores and I am

also

debt-free. To conclude, In my opinion, I think that

credit

cards

are not bad if one uses them wisely. It gives us advantages to make our own home or property. With proper planning, it can be paid.