It has become very common for people to borrow money . Most of people have a credit card a mortgage and often they will buy a car on credit as well . Is this goid idea or is it too risky? Discuss both views and give your opinion.
Some people are convinced that it is better to purchase what they need using a
credit
card
as it can help them manage their finances properly. On the other hand
, others say this
is a risky approach as it could negatively impact consumer behaviour and would eventually lead to an economic crisis. In this
essay, I am going to discuss both of these viewpoints and the reason why I concur with the former statement.
To start with, the effectiveness of loaning money to get items. Adults commonly buy products or services using credit
cards to save their money and ensure their liquidity. This
will help them to invest their cash and reach financial stability. For example
, if a person earns SAR 4,000 each month and spends SAR 3,000, he could invest half of his income in real estate or stock markets. Therefore
, the rest could be spent, and borrow SAR 1,000 from the bank. Moreover
, using a credit
card
is beneficial as there is massive competition among credit
card
issuers. For instance
, my bank usually encourages me to buy by their credit
card
as they offer either cash back or a special discount. Therefore
, it is a win-win deal when the credit
is used to get items.
On the other hand
, using debt to buy things is risky for some people. When an individual constantly borrows money to obtain a product or service, it will lead to irresponsible spending behaviour which will eventually lead to unpleasant consequences. Moreover
, usually, a debtor requires an interest rate, therefore
, if there is no plan to cover these interest rates such
as
investment will be a loss for a person. Correct your spelling
an
Hence
, it is important for society to avoid credit
if it is not necessary.
In conclusion, the goal of purchasing a product or service is to ensure liquidity. This
will allow adults to invest a portion of their income to reach financial stability. However
, if this
behaviour goes beyond the limit, it will lead to unpleasant consequences.Submitted by abaadiip on
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Introduction & Conclusion
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Logical Structure
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Examples
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Task Response
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