Nowadays, it is easier for young people to have a credit card compared to the past.
Do the advantages of this trend outweigh the disadvantages?
At present, young individuals can gain access to credit cards with relatively ease. In my opinion, although the use of credit cards allows for a more comfortable lifestyle and builds credit score, it is unequivocally negative on the whole due to the potential for serious financial consequences.
On the one hand, credit card owners can enjoy life beyond their financial means. This financial instrument enables young individuals to spend on designer clothes, meals at expensive restaurants, and utility bills that would have otherwise been impossible with their current income. A pertinent example that highlights the usefulness of credit cards are with renters as they can borrow money in advance to make rent payments on time when they have not received their paycheck. Another notable benefit is that credit card users can become more creditworthy. If young individuals consistently repay their credit card debt by the due date, they are likely to be approved for larger loans in the future, which can be allocated to major life purchases such as making a down payment on a house or a car. However, credit cards can place young individuals at risk of financial setbacks. Young people are typically less fiscally responsible and therefore more likely to overspend and accumulate debts. These debts can easily escalate over time as credit cards generally carry extremely high interest rates, creating a cycle in which borrowers repay interest without reducing the original principal. Recent statistics from various commercial banks in the US indicate that young credit card holders have a stronger likelihood of reaching their credit limits as they tend to lack experience in managing their finances. In addition, most credit cards impose annual and late payment fees, thereby further exacerbating their financial situation.
In conclusion, despite the financial benefits concomitant with credit card ownership, I believe that these financial tools are likely to imperil most young individuals with accumulated debts and various fees. Young individuals should learn to become financially responsible before applying for a credit card.
Words: 331
Gain access truy cập
With relative ease tương đối dễ
Credit score điểm tín dụng
Unequivocally hoàn toàn
Negative financial consequences hệ quả tài chính tiêu cực
Beyond one’s financial means nằm ngoài khả năng tài chính
Instrument công cụ
Utility bills hóa đơn điện nước
Pertinent có liên quan
Highlights làm nổi bật
Usefulness sự hữu ích
Renters người đi thuê nhà
Borrow money vay tiền
In advance trước
On time đúng hạn
Paycheck tiền lương
Creditworthy đáng tin cậy để cho vay hơn
Consistently 1 cách ổn định
Repay trả
By the due date trước ngày đến hạn
Approved chấp thuận
Larger loans khoản vay lớn hơn
Allocated to phân bổ vào
Major life purchases khoản chi tiêu lớn trong cuộc sống
Making a down payment tiền trả trước
Financial setbacks sự thụt lùi về mặt tài chính
Accumulate tích lũy
Escalate leo thang
High interest rates lãi suất cao
Cycle vòng lặp
Interest tiền lãi
Original principal tiền gốc ban đầu
Commercial banks ngân hàng thương mại
Stronger likelihood khả năng cao hơn
Credit limits giới hạn thẻ tín dụng
Managing one’s finances quản lý tài chính cá nhân
Impose áp đặt
Annual hàng năm
Thereby bằng cách ấy
Exacerbate làm trầm trọng
Financial situation tình hình tài chính
Concomitant with liên quan tới
Ownership sở hữu
Imperil đặt vào rủi ro