Credit card debt management is a frequent topic in IELTS Writing Task 2, appearing regularly in various forms over the past decade. This theme intersects with broader topics like personal finance, economic responsibility, and consumer behavior – all common subjects in the IELTS examination. Let’s examine a recent question that exemplifies how this topic is tested.
Many young people are accumulating high levels of credit card debt. What are the reasons for this problem? What solutions can be suggested to help young people manage their finances better?
Analysis of the Question
This question follows a classic problem-solution structure requiring candidates to:
- Identify causes of rising credit card debt among youth
- Propose practical solutions for better financial management
- Maintain a balanced discussion of both aspects
Similar to managing debt responsibly during economic uncertainty, this topic requires careful consideration of various economic factors.
Band 9 Sample Essay
In recent years, the mounting credit card debt among young people has become a significant concern in many societies. This essay will examine the primary causes of this issue and suggest viable solutions to address it.
Several factors contribute to young people’s accumulating credit card debt. Firstly, the lack of financial literacy in educational curricula leaves many young adults ill-equipped to manage their finances effectively. Additionally, aggressive marketing by credit card companies, combined with easy access to credit, often leads to impulsive spending decisions. Moreover, the pressure to maintain certain lifestyle standards, particularly through social media influence, can drive young people to spend beyond their means.
Understanding the importance of reducing debt before investing is crucial for developing effective solutions. Educational institutions should incorporate comprehensive financial management courses into their core curriculum. These courses should cover budgeting, understanding interest rates, and responsible credit use. Furthermore, governments could implement stricter regulations on credit card marketing to young people and require clear disclosure of terms and conditions.
Students learning about financial management in a modern classroom
Band 7 Sample Essay
Youth credit card debt has emerged as a major problem in modern society. This essay explores why this occurs and what can be done about it.
The main reason young people accumulate credit card debt is their inexperience with money management. Many haven’t learned how to budget properly or understand interest rates. Also, the widespread availability of online shopping makes it very easy to overspend. Social media influencers promoting expensive lifestyles can also encourage unnecessary purchases.
Similar to how rising interest rates affect creditworthiness, several solutions can help address this issue. Schools should teach basic financial skills to students before they reach adulthood. Additionally, banks could offer special programs for young cardholders with lower limits and better guidance. Parents also play a crucial role in teaching their children about responsible spending habits.
Key Vocabulary
- Financial literacy (n.) /faɪˈnænʃəl ˈlɪtərəsi/ – ability to understand and manage financial matters
- Impulsive spending (n.) /ɪmˈpʌlsɪv ˈspendɪŋ/ – unplanned purchases made without careful consideration
- Accumulate (v.) /əˈkjuːmjʊleɪt/ – to gradually collect more and more of something
- Core curriculum (n.) /kɔː kəˈrɪkjʊləm/ – the basic required courses in an educational program
- Disclosure (n.) /dɪsˈkləʊʒə/ – the act of making information known
When focusing on strategies for saving for major life events, these vocabulary items become particularly relevant.
Conclusion
This topic remains highly relevant for IELTS Writing Task 2. Practice writing essays about different aspects of financial management, including credit card usage, saving strategies, and debt management. Share your practice essays in the comments section for feedback and improvement suggestions.
