For several decades now the financial institutions have bombarded society with propaganda promoting the idea that our country is built on credit and that it is more important than cash. But is this really true? There may be some situations where the use of a credit card over cash is appropriate but with a society that is drowning in debt and paying a high price for the use of their credit cards there are many more situations where cash is superior to the use of a credit card.
The Use Of Credit Cards Often Leads To Overspending
Often when we start using credit cards instead of cash we do so while telling ourselves that we’re going to earn points or that carrying the credit card is more convenient than carrying cash and so we think that we’re doing a good thing. The plan is to pay off the entire amount of charges on the next payment. Unfortunately, we often fall into the trap of spending more than we otherwise would have simply because we didn’t have to worry about how much cash we had on hand. We often tell ourselves that we are accumulating more points so we buy something that we might not have or more than we otherwise would have.
When we use cash, it forces us to pay attention to how much we’re actually spending. If we don’t have enough money in our wallet and it forces us to go to an ATM machine to put in our card and enter the amount that we want to take out, it reinforces how much we’re actually using. It also helps us to pay attention to how much we are spending and how much we have left. Many businesses buy atm machines to provide their customers with easy access to cash. When you use the ATM to get some cash it will give you a receipt that not only shows how much you took out but also how much you have remaining in your account.
At first, it may feel inconvenient when you’ve been used to simply carrying your card and using it for every purchase. But pretty quickly, using cash becomes an easy and fast way to pay for the majority of the things that you need on a regular basis. Once you’re used to doing it you will find it just as easy as any other way and it will make you more accountable. Almost everyone who begins using cash, reports back that they find that they are spending far less than they did when using their credit card.