Question

Credit card is a convenient medium to conduct transactions. However, according to The Star Online (2018), 47% of Malaysian youths have high credit card debts.

Q1. What are the causes of this phenomenon? What can we do to curb this? Write an essay about it.

• Use 6 paragraphs for your essay.

• Your essay should have an introduction, two (2) reasons Malaysian youths have high credit card debts, two (2) solutions to curb this situation and also a conclusion.

• Give your essay an appropriate title. You do not have to attach an essay outline for this essay.

Answer 1

Credit Card is a convenient medium to conduct transactions. In case of financial crisis, the payment can be made through credit without creating an additional burden on our pockets. It is quite convenient as well and does not require heavy mathematical calculations. After understanding your payment cycle and the pattern of payment of amount, the credit card can be used extensively and with ease.

Malaysian youths have high credit card debts, the reasons being :

• Unawareness about the credit card payment cycle : Most of the youths are completely unaware about the credit card payment cycle and hence cannot pay in time.
• Lethargic and lazy attitude towards the credit card payment : Due to the lethargic attitude of the youth towards the credit card payment, they have a tendency to keep postponing the same and hence get trapped in credit card debts.

Solutions

• Credit card companies should make the clients aware about the credit card payment cycle and send the detailed plan of the payment cycle. Sessions can also be conducted for the defaulters.
• Companies should send a continuous reminder to the clients about the due date of the payment in order to avoid such circumstances.

Thus it can be concluded as , Credit Card is a convenient way of making payment only if it is used judiciously without becoming the defaulter.