Paying with cash can help you budget better and avoid debt, as you can only spend what you have. It also allows for more privacy and can help you avoid fees or interest charges. However, using a card can offer convenience, rewards, and protection against fraud or theft.
Here are 5 potential benefits to paying with a card:
- Convenience: Carrying a card can be easier than carrying cash and can make transactions quicker and more convenient.
- Rewards: Many credit cards offer rewards programs that can earn you points or cash back for purchases you make.
- Security: Cards can provide more security than cash, as they can be replaced if lost or stolen.
- Budgeting: Using a card can make it easier to track your spending and manage your budget.
- Credit building: Consistently using and paying off your card can help build a positive credit history, which can be beneficial for future loans or credit applications.
Here are five advantages of paying in cash:
- You can avoid debt or interest charges by not using credit.
- You can budget more effectively and avoid overspending because you can physically see how much money you have left.
- You can negotiate better deals or discounts when paying with cash.
- You can protect your personal information from potential identity theft or fraud.
- You can have a greater sense of control over your finances and avoid impulse purchases.
What are the statistics?
According to a 2019 survey by UK Finance, debit cards were the most frequently used payment method in the UK, with 15.6 billion transactions. However, cash is still widely used, with 10.9 billion cash transactions in the same year.
Thoughts Summary
It is important to remember that most bills have to be paid via card payments however when it comes to variable spending it is much easy to track using cash and budgeting methods such as cash stuffing. A quick google search clearly shows that cash stuffing has helped people around the world with budgeting and maintaining to stay within their means. So, it is not necessarily a cash vs card because you can also be someone who uses both to take advantage of better offers.