Prompt: Many people are using credit cards or loans to run up personal debts that they may be unable to repay. It should therefore be made difficult for individuals to borrow large amount of money. What is your opinion on this?

These days, people can use credit cards and loans to reach financial resource for personal reasons. As a result, they may be deep in debt and repaying ability seems to be impossible. Therefore, individuals often meet many obstacles when they borrow huge amount of money from banks. In this essay, I shall consider the main causes of this problem, and try to put forward some possible solutions. Ċ First of all, the financial and income information of consumers is not evident. These people tend to fear of providing information which relate to their income and situations. Thus, it is very hard for banks to verify the financial situations of their clients to value the repaying ability. Ċ Another factor contributing to this setback is that banks often find many difficulties to evaluate the possibility of their consumers' projects. Banks do not have enough reliable information source to asses the customers' projects. In Vietnam, the center of information of Vietnam State Bank almost has no information about the customer's project; whether it really works or not. Furthermore, suppose that banks allow customers to borrow money, if risks occur, those banks will have to take a lot of time and money for the capital retrieval. Because of this, executives of banks usually decide to limit the ability of borrowing private capital. Ċ When all is said and done, frankly, these reasons produce the cautious attitude of bank in allowing individual to lend. However, banks should not eliminate the borrowing money of individual because of many unavoidable good aspects. Customers and banks should share responsibilities for mutual benefits. By providing clear and adequate information, banks will believe in clients, so the lending process will be faster. Another long-term solution to address this issue is that lending policy should not only depend on mortgage estates but also take care closely of the possibility of customer's projects.