Cash Vs Plastic
In the wake of some huge breaches of credit card security in the United States, many consumers are now weighing up the advantages of using credit cards and debit cards compared to the 'security' of cash.
But with all the guarantees and protections on credit cards today, it would seem that cards are actually the more secure option than cold hard cash. So are there any advantages of using cash over cards?
Less Frivolous Spending!
There have been studies done which show that consumers tend to spend less when using cash compared to using card. The main reason? Handing over cash compared to swiping plastic, feels more like you are spending real money. When you actually have tangible cash in hand, and you spend it, you can see the amount dwindling in your hands!
A great idea to try is the cash-only diet, withdraw $100 from the ATM at the start of the week and you will find yourself being able to stretch that amount to last you the whole week. The impulse $20 purchases will stop pretty quickly! And once you have spent your $100, that's it, you are done for the week.
Even with the new contactless and tap card payment systems cash is still faster. Sure you don't have to put your pin number in or sign anything anymore, but still, have you ever noticed that you have to wait for your card purchased to be approved and for the staff member to key in all the details and load up the machine, etc. etc. etc...
Compare this to simply handing over cash, the draw popping open, change handed back and you're on your way out of the store. Simple and quick.
As for the other advantages of cash, well, that's about all there is... So to be fair, we should look at the other side of the competition and check out the advantages of using cards.
Easier To Track
Budgeting apps for your smartphone can be linked up to your bank account and credit cards to show you what you are spending and where you are spending. Even banks have their own versions of budgeting tools for you to use through your internet banking service.
Indeed you could always ask for receipts when you pay with cash and keep track with the good old pen and pad, but do you really have time to do all this? And is it worth all the effort when you can let your iPhone take care of it instead?
No Choice But Plastic
What is sometimes frustrating for a lot of people who not only want to use cash, but also those who do use cards but only debit cards, is the requirement that you have a credit card to pay with at places like hotels, car rental services or anything online.
Plus if you've never had a credit card, you've probably never had a credit history so when it comes to buying your first home and getting your first mortgage, you might find it harder to accomplish.