Should You Use Cash Or A Credit Card?Jul 06, 2023
The debate between cash versus card has been a long-standing one and choosing the wrong payment method can have a significant impact on one's finances. Factors such as overspending, convenience, benefits, and interest charges need to be considered when deciding which payment method to choose.
An Argument for Cash:
When it comes to controlling overspending, cash is a better option as it allows individuals to allocate their money in a more tangible and avoid tapping their card without thinking twice.
An Argument for Credit Cards:
Credit cards are more convenient, especially for travel purposes, as they eliminate the need to carry cash and worry about losing it. Credit cards also come with benefits such as rewards and cashback, which can be a great perk when utilized properly.
Interest charges must be taken into account, as credit card debt is one of the worst types of debt due to high interest rates ranging from 17 to 25 percent. If you are going to allow interest to accumulate, you should rethink using a credit card as your payment strategy.
Overall, the best payment method is really going to depend on your individual financial situation and your ability to use your chosen method responsibly.