Both cash and credit cards offer conveniences. However, in certain circumstances you might be wise to favor one choice over another. Considering factors such as convenience, safety and cost will help you decide when to pay with cash or credit.
Similarly, cash and credit cards can be equally convenient to use. However, credit cards are more provide extra convenience than cash if you generally don’t carry a lot of cash. Credit cards offer the convenience of not having to actually pay for your purchase until several weeks after you receive your bill. For the most part, paying with credit cards is considered safer than paying with cash. If you were to lose or misplace cash, or if it were stolen, you’d have little chance of recovering it.
Credit cards are typically more expensive to use than cash, but you can avoid additional costs of either method if you use them carefully. In contrast, with cash, it’s much harder to fall into debt. You can still overspend and end up totally broke, but if you never actually borrow any money, at least you don’t owe creditors at the end of the day. Cash is typically fee-free when it comes to making payments, but it can cost you to access cash. Paying your bill in full and only getting cash from fee-free ATM machines are the best ways to ensure each purchase isn’t costing you a little extra. However, credit cards are more generally accepted among online stores. If you prefer shopping online, like many consumers do, be sure you’re taking precautions to ensure you’re not over-exposed online.
Sometimes it’s easier to spend money when you don’t see it leave your bank account. When you have a wallet full of cash on the other hand, you watch it disappear as you make purchases. Many people prefer to use cash only because it helps them keep mental tabs on how quickly their money is running out. Paying with plastic or cold hard cash can offer many other benefits and drawbacks. Regardless of your preference, keeping an eye on your credit activity and personal budget will help determine what method of payments works best for you.