People today are able to take out loans from the bank or get a credit card very easily

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IELTS Essay Topic: Bank Loan & Credit Card

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?


These days, taking out personal loans or credit card cash advances are the fastest and most uncomplicated ways to borrow money. In the time of global pandemic, many people are facing financial difficulties which turned them to avail the fast cash loans offered by banks. In this essay, we will explore the benefits and drawbacks of quick cash loans.

One of the easiest ways to find solutions to financial challenges is to access financial products from banks.  Borrowing money from bank is quite popular because of a number of benefits offered by financial institutions to allure borrowers. One great example is by taking a loan to start a business. When someone has no sufficient funds, bank loans can help absorb the initial shock of the operation. Another example is during emergency, the availability of cash can protect someone from falling due to lack of funds. Loans, can support people to start operating the business or undergo medical treatment even in a situation of financial shortfall.

Despite their benefits, there are certain drawbacks in taking loans. When someone has an easy access in taking out personal bank loans or through credit card, someone might overspend. In particular, an individual will be tempted to spend more than what they can afford. Having a credit card can draw someone to financial woes even if they carry only a small balance each month. Similarly, secured personal bank loan required collateral from the borrower that if the payment is not made on time, the lender will seize someone personal assets or business properties.

In conclusion, bank loan or credit card loans are meant to help people access cash in a convenient and fast way. However, if misuse, the accessible funds can possibly trap borrowers in a long-term debt. In spite of all the disadvantages stated above, many people still consider bank loans as the most viable option to turn to during emergencies.  

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2 replies »

    • You’re right! one of the pitfalls of having an easy access to instant loan is the chance of card holders to overspend . If people can use it responsibly, this card can help bridge the gap especially to those who are living from paycheck to paycheck.

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