Is it Better to Pay Cash or with Credit Cards
January 23rd, 2010
Since the down turn of the economy many people feel it is the over use of credit cards to blame. I do feel that they may be partly to blame, but its not the credit cards themselves. Really its the individuals using them. So you may start to believe that paying for everything with cash is best. So which is really better? Cash or Credit?
When you purchase things with cash, its true, you have no bills to follow. You have paid for the item or items and own them with no worry of having to pay for it later on. Many people live by the idea of cash and avoid any kind of credit there is, and that may work for them, but its not always the best way. When you carry enough cash on you to pay for items that you may need that day or week, you run the risk of losing it. Once cash is gone, its gone!! You may also have to take an increased number of trips to the bank to replenish your funds as well. I know in my life, the fewer times I go to the bank, the better. Cash doesn’t leave a paper trail either. When you make a purchase all you have proving it is the receipt. So what if you lose that receipt. You now have no way of proving that you paid for something, which could pose a problem if you were to ever need to have it repaired or lost. Cash has its benefits, but it also has many cons.
Credit cards can get you over your head in debt if you let it. Its about being a responsible spender. If you purchase items that you can pay off in a reasonable amount of time, you won’t have to worry about getting in over your head. Credit cards are great for those emergency situations like needing unexpected auto repairs. Also you have better proof of your purchases. If you lose a receipt, many times you can call the credit card company and obtain a copy of the purchase. The best reason to make purchases with a credit card is in those cases when you make a purchase and have been ripped off. Today with businesses going under, you need to be careful. If you make a deposit on something and then the business goes under, you still can get your money back when using a credit card. Had you used cash, you would have been out of luck.
So you can decide for yourself, which is better. If you know that you can not control your spending, then maybe cash is a better choice, but if you have any will power, credit cards are definitely the best choice.
Entry Filed under: Miscellaneous