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Credit cards provide conveniences for everyone who uses it. Bill payments and purchases are made easy by using credit cards. But this also leads to financial trouble, especially when you use it irresponsibly. You have an alternative to keep yourself debt free - use cash. Here are some of the advantages of using cash in your transactions:
1. Using cash for purchases helps you keep track of your expenditures easily. Transactions are easier because you won`t need to keep track of interest rates and due date for bills. Unlike credit cards, cash outflow is very much visible and you don`t have to wait for the end of the month to see your bills. Cash out flow is always in real time and cash is accessible at any time.
2. Cash is accepted anywhere you go. Some grocers even give discounts when you pay in cash.
3. Using cash to pay bills helps you save on interest rates. This means you won`t run the risk of going in debt and damaging your credit records.
Although a credit card is convenient since it spares you from carrying around a lot of money when making a large purchase, you always give yourself more fees to pay. Items paid in full with cash transactions keep your bills away from more interests.
4. Using cash gives you peace of mind. You`re no longer figuring out how to pay off the incurred interest rates, instead, you get to put this money on your savings.
5. It`s a lot easier to budget cash. When you allot cash for every purchase on a weekly basis, it encourages you to not spend only what you have, hence, keeping you aware of how much you have in store. It is easier to limit your cash than your credit card purchases.
6. A lost credit card means having risk of stolen identity. With some transactions done on line, anyone who may have stolen a credit card can use the card to purchase items or avail services at the expense of the owner of the card. On the other hand, cash transactions are personal so you don`t have to worry about getting the wrong business deal.
In a world where almost everything revolves around monetary transaction, learning to be frugal is a must. Even when credit cards offer really small interest rates, it is helpful to keep in mind that these rates are applied for every transaction.
No matter what people say about the advantages and disadvantages of using cash over credit cards, it always comes down to the customer. Even when you have all the money in the world to buy practically anything you want but you are careless and never think of your future, then you stand to lose everything in an instant. Whether cash or credit card, you still need to exercise discipline. It is best to think about how you can save rather than spend. You should be responsible enough to know your financial obligations. A simple lifestyle won`t keep you drenched in liabilities but rather gives you contentment.
