It’s the only same-as-cash payment we approve of, and it’s just as secure as using a credit card. That’s where a debit card comes in super handy. We get it-the world has changed and many of us do most of our shopping online now. Reason 2: I can’t use cash to buy things online. credit card and more about changing your behavior and getting on a budget. Controlling your spending is less about cash vs. But everyone needs a plan for their money, no matter their preferred payment method. Truth: Undisciplined spending is often a symptom of a larger problem. And credit cards only make this problem worse-after all, they’re designed to keep you spending more, owing more and paying more in interest. Reason 1: I’ll blow through all my money because I lack self-control. Now that we’ve covered the benefits of using cash, let’s look at the most common reasons people use credit cards-and why cash is still the way to go. ![]() Credit Card: Common Reasons People Use Credit Cards 3 You’ll appreciate your brand-new transmission, reupholstered reading chair, and even your kids’ Cap’n Crunch more if you pay with cash instead of putting it on a card. End of story.Īnd one study found that those who pay with cash actually have a more positive relationship with the items they purchase. Unlike credit, when you buy those new shoes with cash, you don’t have to worry about making payments on them or the interest coming back to bite you. (Don’t even get us started on credit card annual fees.) Paying with cash means you own, not owe. Either way, you’re paying extra to use a credit card. And even if Farmer Joe did have a credit card machine, a lot of small business owners get charged for each swipe-which means you’ll probably get stuck paying the convenience fee (which isn’t very convenient for you, is it?). You might be able to find an ATM nearby, but that’s probably going to run you a couple bucks in service fees. Or picture this: You spot the perfect tomato at your local farmers’ market. So, what do you do? You add a few more packets of gum and end up spending more than you planned. ![]() only to find out there’s a minimum charge to use a credit card. Think of the times you run into the dollar store to buy a few items. No one? So, use cash to keep your personal information to yourself. Raise your hand if you want to have your identity stolen. 2Įach time you swipe your card or type your card numbers in online, you increase the chance of having your personal info compromised. It gives you great walk-away power-which will leave the salesman saying, “Wait, please come back!” Paying with cash reduces your chance of having your identity stolen.Īccording to the 2021 Identity Fraud Study released by Javelin Strategy & Research, criminals made off with $13 billion in 2020 by stealing people’s personal financial information. If you’re shopping for a big-ticket item, like a car, offer to pay in cash. Salesmen go wild when they get a whiff of those Benjamins. There’s no better bargaining chip than a pocket full of cash. You can get a good deal when you use cash. You’re more likely to stick to your budget and find ways to stretch your dollar-like shopping around and looking for sales. There’s something about physically handing over your hard-earned cash that makes you think twice before you spend it. You spend less when you use cash.Ī study from the Journal of Experimental Psychology: Applied found that it’s psychologically less painful when you use a credit card over cash because it feels like you’re spending “future” money, rather than present money. Trust us, seven days of tuna fish sandwiches may be the best overdraft protection there is. ![]() Don’t let credit control your life! Learn the proven plan to win with money.Īnd when you realize that you don’t have an endless supply of money at your fingertips, you’re more likely to change your money habits.
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