Credit liabilities.

In modern world, it is undeniable, that credit system plays major role in our
society. Credit system is one of the main signs of capitalism. Credit liabilities are
meant to provide people an opportunity to buy goods they cannot afford at the
moment. Even though loans are considered to make peoples’ life easier and lead
them to richness, it is also undeniable that sometimes taking a credit results in
despair.
To begin with, it is necessary to set the definition of credit system. This term is
broad with many different meanings in the financial world. Credit is generally
defined as a contractual agreement in which a borrower receives something of
value now and agrees to repay the lender at a later date—generally with interest.
Now, as the definition of credit is set, it can be passed to analyzing drawbacks and
advantages of this system.
On one hand, credit system gives opportunities for increasing the level of life and
starting education at a prestigious university or college. Credit also allows people
to buy things they are unable to save up for, such as an expensive car or real estate.
It cannot be argued, that starting your own business would be close to impossible
without credit system, consequently, credit system also allows to boost economics
by giving entrepreneurs a chance to start and develop a small business.
On the other hand, credit can put person under stress and lead to despair. For
example, it is frequent case, when a venturer after taking a credit fails to run a
successful business and hence is unable to pay out the debt. This often leads to
depression, going homeless or even committing a suicide.
To sum up, even though credit system has certain disadvantages, to me it is
absolutely clear, that anarcho-capitalistic economics structure, which is dominant
in the modern world, is impossible without this system.

Artemijs Mimrins