Credit card usage and personal finance management are increasingly common topics in IELTS Writing Task 2, appearing in approximately 15% of recent tests. This trend aligns with the growing importance of financial literacy globally. Let’s examine a recent test question and analyze sample responses across different band scores.
Some people think that credit cards encourage people to spend more money than they actually have and cause problems. Others say credit cards are useful and safe. Discuss both views and give your opinion.
Analysis of the Question
This question requires candidates to:
- Discuss advantages and disadvantages of credit cards
- Present balanced arguments for both viewpoints
- Include personal opinion with supporting evidence
- Maintain relevance throughout the response
Credit card usage has become integral to modern lifestyle and financial management
Band 8 Sample Essay (290 words)
While credit cards have become an integral part of modern financial transactions, their impact on spending habits remains a subject of debate. This essay will examine both perspectives before presenting my viewpoint.
Those who oppose credit card usage argue that these financial tools can lead to excessive spending and debt accumulation. When consumers have easy access to credit, they may be tempted to make impulsive purchases without considering their actual financial capacity. Similar to how peer-to-peer lending disrupts traditional banking, credit cards have transformed how people manage money, sometimes leading to financial difficulties. Moreover, high interest rates and hidden fees can trap users in a cycle of debt that becomes increasingly difficult to escape.
However, proponents emphasize the numerous benefits of credit cards. These payment tools offer convenience, security, and protection against fraud, which is particularly important in today’s digital economy. Furthermore, responsible credit card use can help build a positive credit history, essential for future financial endeavors such as obtaining mortgages or business loans. Just as how high-interest savings accounts benefit investors, credit cards can offer rewards and cashback programs that benefit careful users.
In my opinion, while credit cards can pose risks to undisciplined spenders, their advantages outweigh the disadvantages when used responsibly. The key lies in financial education and self-control. Credit cards should be viewed as financial tools rather than extensions of income, and users should maintain strict budgeting practices.
Band 6.5 Sample Essay (275 words)
Nowadays, credit cards are very common in our daily lives. Some people think they are dangerous while others believe they are useful. I will discuss both sides and give my opinion.
On the negative side, credit cards can make people spend too much money. When people have credit cards, they often buy things they don’t need because it feels like they’re not spending real money. Also, many people don’t understand the high interest rates and end up paying much more than they borrowed. This is similar to the pros and cons of living in a cashless society, where spending becomes less tangible.
However, credit cards have many good points. They are very convenient for shopping online and traveling. If someone steals your credit card, the bank can help you get your money back. Also, many credit cards give points or rewards when you use them, which can save money.
In my opinion, credit cards are useful tools if people use them carefully. I think the problem is not with credit cards themselves but with how people use them. Banks should teach customers about using credit cards responsibly.
Understanding credit card statements and managing expenses responsibly
Key Vocabulary
- financial literacy (n) /faɪˈnænʃəl ˈlɪtərəsi/ – understanding of financial matters
- impulsive purchases (n) /ɪmˈpʌlsɪv ˈpɜːtʃəsɪz/ – unplanned buying decisions
- accumulation (n) /əˌkjuːmjəˈleɪʃn/ – gradual gathering of something
- fraudulent (adj) /ˈfrɔːdjələnt/ – involving deception
- tangible (adj) /ˈtændʒəbl/ – physical, real, can be touched
Consider practicing with these additional related topics:
- The impact of digital payment methods on society
- The importance of financial education in schools
- The role of banks in promoting responsible lending
Share your practice essays in the comments section for feedback and discussion.
