by PrimeWay
After all, pulling out the cash, counting it, handing it over, and then waiting for change simply takes forever! OK, so I'm exaggerating a bit, but you get the point – it might seem inconvenient to pay with cash, or easier to pay with credit. However, the next time you go for the credit card, consider the following benefits of using cash instead of your card.In today's fast paced world, it's easy to pull out the good 'ole credit card to pay for purchases.
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If you don't pay your credit card balance in full each month, then the interest you accrue on your purchases will end up costing you more than the original purchase. With time, that $50 pair of shoes could end up costing you $100 or more, and the bigger the balance, the more interest you're charged and accrue over time. Interest compounds, so you're actually paying interest on the interest you accrue each month, as well. It can be easy to get into debt, and not so easy to get out of it. In addition to paying more in total for purchases over time, you're also accumulating more debt if you don't pay your bills off from month to month. Wouldn't it be nice to think that once a purchase is made, you're done with it done and won't be paying on it for months – or even years – down the road?1. Accrued interest adds up on credit cards
2. Paying with cash vs. credit helps you keep your debt in check
6 Reasons Why Using Cash Is Better Than Credit
The next time you go for the credit card, consider the following benefits of using cash instead of your card.
When you pay with the cash you've budgeted for purchases, it's easier to track exactly how you're spending your money. It's also an eye-opener and keeps you in reality as to how much cash is going out vs. coming in from week to week or month to month. These are just a few of the reasons why it's better to pay with cash vs. a credit card. That's not to say there's not a time or place to use a credit card, but you want to be responsible when you do and have a plan to pay it off within a specified period of time. Using a credit card can result in additional expenses you did not anticipate. Some fees you will avoid by using cash instead of credit include: Although many spots do accept credit cards, not every business will. Farmer's markets and bazaars that cater to small businesses cannot always support credit transactions. In addition to this when you travel abroad you may have to default to using cash. As many countries like Japan still rely heavily on cash transactions, and not all credit types such as American Express are accepted. Everyone has found themselves in a situation where they have needed to swipe their credit card in a high-traffic area like a gas station only to discover a fraudulent charge on their account shortly thereafter. When you default to using cash, this is one less thing you need to consider as no one can steal your personal information through your purchase. 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 might choose to use your debit card for certain monthly purchases or bills, but use cash for most day-to-day spending to help you keep that budget and balance in the green.3. Cash makes it easier to budget and stick to it
4. You avoid additional fees
5. Not all vendors accept credit cards
6. Your personal information is protected
Using debit cards vs. cash
Author Bio
PrimeWay
Since 1937, PrimeWay Federal Credit Union has been a not-for-profit organization dedicated to providing superior financial services to members in the Houston area. We offer more personalized services than you'll traditionally find at more conventional financial institutions. Our hallmarks are low interest rate loans, higher dividends on deposits and excellent member services.
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