Reasons Why Using Cash is Better than Credit Cards
Credit cards are safe to carry and use
If you lose your wallet or are robbed, whatever cash you had with you will almost certainly be gone forever. If thieves go on a spending spree with your credit card, however, you usually won’t be held responsible for fraudulent purchases. The resulting mess may take some time to sort out, but you won’t lose any of your money.
Debit cards also pose risks. When your credit card is used fraudulently, it is the card issuer who loses the money. When your debit card is used fraudulently, money is taken out of your bank account. Assuming that you report fraud promptly, you should get your money back – eventually. It may be a while until things settle down. During that time, checks may bounce, automatic payments may be denied due to insufficient funds, and you may have difficulty covering your bills. The Immortals of Meluha PDF Download
credit cards earn rewards easy
Credit card rewards exist to encourage you to use your credit card, and they are very motivating indeed. With a simple flat-rate card that pays the same amount on every purchase, you can get back 1.5% or even 2% of every dollar you spend, either in the form of cash or travel or as points or miles to be redeemed for other things. Spend $1,000 per month, and you can make $180 to $240 per year without much why not me book pdf download effort.
Other cards offer higher rewards in specific spending categories, such as grocery, gas or restaurants. Combine a handful of cards, and you can increase your rewards significantly.
For example, let’s say a family has four popular cash back credit cards – American Express’s Blue Cash Preferred® Card, Citi® Double Cash Card – 18 months BT Offer, Discover It® Cash Back and Chase Freedom Flex. . Using them strategically, that family can earn hundreds of dollars in cash back per year:
- Interest earned on credit cards increases
If you don’t pay your credit card processing balance in full each month, the interest you earn on your purchases will cost you more than the original purchase.
Over time, that $50 pair of shoes can cost you $100 or more, and the larger the balance, the more interest you’ll be charged and earned over time. The interest compound, so you are actually paying interest even on the interest you earn each month. The Housemaid by Freida McFadden Pdf download
You Should Probably Pass on Merrick Bank’s Credit Cards.
- Paying With Cash Vs. Credit Helps You Keep Your Debt Under Control
It can be easy to get into debt, and getting out of it is not that easy. In addition to paying more for purchases over time, you’re also accumulating more debt if you don’t pay your bills month after month.
Wouldn’t it be nice to think that once a purchase is made, you’ve made it and you won’t be paying for it for months – or even years – down the road?
3 Reasons Why Using Cash Is Better Than Credit
The next time you go for a credit card, consider the following benefits of using cash instead of your card.
- Makes it easy to create and stick to a cash budget
When you pay with the cash amount you set for purchases, it becomes easier to track how you’re spending your money. It’s also an eye-opener and keeps you realistic about how much cash is going out versus week-to-week or month-to-month.
These are some of the reasons why it is better to pay by cash versus credit card. That doesn’t mean there’s no time or place to use a credit card, but you do want to be responsible when you do and plan to repay it within a specified period.
using debit card vs cash
On a final note, if you use a debit card regularly, it’s also good to keep track of what you’re spending, as it’s not uncommon for people to use their debit cards and overdraw their accounts. . You can choose to use your debit card for certain monthly purchases or bills, but use cash for most day-to-day expenses to help you keep that budget and balance in the green.