I’m a strong advocate of using credit cards for all purchases, everyday, perhaps with exception of small purchases such as chewing gum and candies and such. But for everything else, I strongly recommend using credit cards. Not only are you borrowing money for free for up to a month by using credit cards, many also offer excellent rewards as well. Discover rewards program, along with Chase offer one of the best rewards program out there. There are other programs such as American Express and Citi that are respectable as well. Although you may receive a percentage or two back in cash rewards or points by using these credit cards, there may be a few situations or scenarios where cash might offer a better purchasing solution.
Minimize identity thefts – Millions of people lose their identity each year. Identity thieves usually find their information through credit card purchases / statements and other bank information. By using cash and eliminating use of credit cards (including debit cards), you minimize the risk of having your identity stolen.- Maximize spending control – When people are given the freedom to make all sorts of purchases without having to pay anything up front, they tend to go a little careless. If they’re not paying attention, things can get a little out of hand and all of a sudden, they’re in the middle of a huge credit card debt situation. By using cash (or debit cards), you only spend what you have. If you only have $100 in your bank account, then that’s all you will be able to spend. There will be no risk of putting yourself in an unwanted debt situation by making unwanted big purchases.
- Interest free – Since you’re not borrowing money from your credit cards, you never have to pay any interest fees with cash. You pay what it costs and that’s it. There are no potential for any other hidden fees and charges associated with credit card purchases.
- Save on gas - Oftentimes, gas stations will give you 5 cents or 10 cents off per gallon when using cash. Use cash to save money instantly!
- Save time – When dining at a restaurant, it’s so much quicker to pay with cash, especially when you’re in a group setting. If you’re out with a group of 5 people and the check is divided equally and everyone is paying with their credit cards, it just takes that much longer to pay. Just pay with cash and be done with it.
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I think it is easier, not necessarily more convenient. If I used it at a restaurant, I would lose the frequent flier miles I could earn and I would have to wait for change.
krantcents recently posted..How Do You Choose the Right Career
Krantcents, I agree with you. I still have friends who gave up on credit cards and now use cash exclusively. no matter how much I try to understand their reasons, I just couldn’t comprehend it. So I put myself in their shoes and came up with these 5 items.
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