The topic of managing debts during economic downturns has become increasingly relevant in IELTS Writing Task 2 examinations. Based on analysis of past papers and current global economic conditions, questions related to personal and national debt management appear approximately once every 3-4 months in actual tests. Let’s examine one common question format that has appeared in recent examinations.
managing personal debt during financial crises
Question Analysis
Some people believe that governments should help citizens manage their personal debts during economic crises, while others think individuals should be responsible for their own financial problems. Discuss both views and give your opinion.
This question requires candidates to:
- Discuss two contrasting viewpoints about debt management responsibility
- Present arguments for both government intervention and individual responsibility
- Provide a clear personal stance supported by evidence
- Conclude with a balanced perspective
Band 8 Sample Essay
In times of economic hardship, the question of who should bear responsibility for personal debt management has become increasingly contentious. While some advocate for government intervention, others maintain that individuals should handle their own financial difficulties. In my view, while personal responsibility is crucial, some level of government support is necessary during severe economic downturns.
Those who support government intervention argue that economic crises are often beyond individual control. When systemic financial failures occur, even prudent citizens can face overwhelming debt due to job losses, market crashes, or currency devaluation. strategies for managing high personal debts Government assistance through debt relief programs, low-interest refinancing options, or temporary payment suspensions can prevent widespread financial collapse and maintain social stability.
Conversely, proponents of individual responsibility contend that government intervention may encourage reckless borrowing and create moral hazard. They argue that people should carefully manage their finances, maintain emergency savings, and accept the consequences of their financial decisions. This perspective emphasizes personal financial literacy and prudent planning as the foundation of financial security.
In my opinion, a balanced approach is most appropriate. While individuals should certainly strive to manage their finances responsibly, governments have a role in providing support during exceptional circumstances. For instance, during the recent global pandemic, many countries implemented debt relief measures that prevented massive personal bankruptcies and maintained economic stability.
Therefore, I believe the solution lies in combining personal responsibility with targeted government support during genuine crises. This approach encourages financial prudence while providing a safety net when extraordinary circumstances overwhelm individual capacity to cope.
Government debt relief programs helping citizens during financial crisis
Band 6.5 Sample Essay
The issue of who should handle personal debts during economic crises is widely debated. Some people think governments need to help citizens, but others believe people should solve their own money problems. I will discuss both sides and give my opinion.
how to avoid excessive credit card debt On one side, government help can be very important during bad economic times. When many people lose their jobs or businesses fail, they cannot pay their debts even if they tried to be careful with money. The government has more resources and can make special programs to help people with their loans and credit card debts. This stops many people from going bankrupt.
However, other people think everyone should be responsible for their own debts. They say that if the government always helps, people will borrow too much money and not worry about paying it back. Also, using tax money to help people who borrowed too much is not fair to careful people who saved money and avoided debt.
In my opinion, both the government and individuals have important roles. People should try to manage their money carefully and not depend on government help. But sometimes, like during very bad economic problems, the government should step in to help citizens who are struggling through no fault of their own.
Vocabulary Analysis
- contentious (adj) /kənˈtenʃəs/ – causing or likely to cause disagreement
- systemic (adj) /sɪˈstemɪk/ – affecting an entire system
- moral hazard (n) /ˈmɒrəl ˈhæzəd/ – lack of incentive to guard against risk
- prudent (adj) /ˈpruːdənt/ – acting with care and thought for the future
- bankruptcy (n) /ˈbæŋkrʌptsi/ – legal status of being unable to pay debts
- intervention (n) /ˌɪntəˈvenʃn/ – the action of becoming involved in a situation
- refinancing (n) /riːˈfaɪnænsɪŋ/ – replacing existing debt with new debt
- reckless (adj) /ˈrekləs/ – without thinking about consequences
Writing Tips and Expected Questions
Practice writing essays on related topics such as:
- The role of financial education in preventing personal debt
- Government policies for managing national debt
- The impact of personal debt on society
- Solutions for reducing credit card dependency
Share your practice essays in the comments section for feedback and improvement suggestions. Remember to focus on clear structure, balanced arguments, and appropriate vocabulary use.
