Credit card rewards and financial management have become increasingly common topics in IELTS Writing Task 2 examinations. Based on analysis of past test papers, questions about personal finance and credit card usage appear approximately once every 4-5 months, particularly in countries with high credit card penetration rates like India, China, and South Korea.
Question Analysis
Some people believe that credit card reward programs encourage excessive spending and debt accumulation. Others argue these programs help people save money and manage finances better. Discuss both views and give your opinion.
This question requires candidates to:
- Examine both perspectives on credit card reward programs
- Provide relevant examples and explanations
- Present a clear personal stance
- Structure arguments logically
Credit card rewards and spending habits discussion in IELTS Writing Task 2
Band 8 Sample Essay
Credit card rewards schemes have sparked considerable debate regarding their impact on consumer behavior and financial wellbeing. While some contend these programs drive irresponsible spending, others maintain they offer valuable financial benefits when used strategically. In my view, while reward programs can potentially encourage overspending, their benefits generally outweigh the risks for disciplined users.
Those who criticize reward programs argue they can lead to financial difficulties. The promise of cashback, miles, or points often tempts cardholders to make unnecessary purchases or exceed their budgets. For instance, someone might buy expensive electronics they don’t need simply to earn bonus points, ultimately accumulating debt with high interest rates. Moreover, the complexity of reward systems can obscure the true cost of credit card spending, making it harder for consumers to track their expenses effectively.
However, proponents maintain that reward programs provide significant advantages for careful users. When managed responsibly, these programs enable cardholders to earn substantial benefits from necessary expenditures they would make anyway. For example, a family using a rewards card for regular grocery shopping and utility payments could earn enough points for free flights or substantial cashback annually. Additionally, many programs offer valuable insurance coverage and purchase protection, enhancing financial security.
In my assessment, credit card rewards can be highly beneficial when approached with proper financial discipline. The key lies in viewing rewards as a bonus from planned spending rather than an incentive to spend more. I believe cardholders should establish clear budgets, pay balances in full monthly, and choose cards aligned with their regular spending patterns to maximize benefits while minimizing risks.
how credit card usage affects personal financial health
Band 6.5 Sample Essay
Credit card reward programs are very popular nowadays and people have different opinions about them. Some people think they make people spend too much money, while others believe they help save money. I will discuss both sides and give my opinion.
On one side, reward programs can cause problems with spending. When people see they can get points or cashback, they might buy things they don’t really need. For example, many people buy extra clothes or gadgets just to get rewards points. This can lead to big credit card bills that they cannot pay. Also, some people forget about the high interest rates on credit cards because they focus too much on the rewards.
However, other people say reward programs are good for saving money. If someone uses their credit card carefully, they can get many benefits from their normal spending. For instance, when buying food or paying bills with a rewards card, people can get points for free travel or get money back. Some cards also give extra protection when buying expensive things.
In my opinion, reward programs can be good if people use them carefully. I think it’s important to make a budget and not spend extra money just to get rewards. People should also choose cards that match what they usually buy and always pay their full bill each month.
Analysis of Band Scores
Band 8 Essay Features:
- Sophisticated vocabulary: “sparked considerable debate”, “obscure”, “proponents”
- Complex sentence structures
- Clear organization with cohesive devices
- Well-developed arguments with specific examples
- Natural paragraph transitions
- Balanced discussion with clear personal stance
Band 6.5 Essay Features:
- Simple but clear vocabulary
- Basic sentence structures with some errors
- Adequate organization
- Examples provided but less detailed
- Some repetition in language
- Less sophisticated transitions
Key Vocabulary
- accumulate (v) /əˈkjuːmjʊleɪt/ – to gradually get more and more of something over time
- obscure (v) /əbˈskjʊər/ – to make something difficult to understand or see clearly
- proponent (n) /prəˈpəʊnənt/ – a person who supports an idea or plan
- strategic (adj) /strəˈtiːdʒɪk/ – carefully planned to achieve a specific goal
- discipline (n) /ˈdɪsəplɪn/ – the ability to control one’s behavior and actions
Consider practicing with these similar topics:
- The impact of digital payment systems on personal finance
- The role of financial literacy in modern society
- Advantages and disadvantages of cashless transactions
Feel free to share your practice essays in the comments section for feedback and discussion.
