CREDIT CARD OR CASH?

Credit Card Disadvantages

We don’t always withdraw money, sometimes paying with a credit card lets you swipe, forget about the bill for a month, and unless you’ve spent more than your bank limit. This can work against you. For example, if you have $50 for new clothes for the money and you see a cute dress that’s calling your name for $150, you can swipe your credit card and don’t feel you spent money until the bill comes. And if you’ve overspent so much that you can’t pay your bill, you’ll have to pay extra money to the bank.

Cash Advantages

The biggest advantage to paying with cash is that you’re limited to how much you can spend. If you don’t have the money in your wallet, you’re not able to just swipe away your savings. In addition, you don’t have to worry about missing a monthly payment and having your credit card company phone you about late payments. Moreover, some retailers don’t take credit cards; they accept only cash.

Cash Disadvantages

Paying with cash limits you to carry around enough money to make all of your purchases. If you’re just stopping at the store for a gallon of milk, this probably isn’t a problem. However, if you’re getting your groceries for the week, refilling your gas tank and buying a new suit, you’re carrying a lot of cash. If your wallet is lost or stolen, that money’s gone.