There will always be a debate on whether we should use cash or credit more, and the arguments will all be noteworthy.
Cash is king, or so they say, and we see this every time. A lot of premiums attached to a purchase can only be received when you buy with cash. Discounts, freebies, other bonuses, are given to those who pay with cash.
This clearly shows that merchants want you to pay more with cash than with credit. Some consumers will also debate that spending in cash is healthier, because you will never be in debt, and you are aware of how much you spend, therefore, making you more conscious.
On the other hand, spending in cash means you automatically lost that much spending power the minute you pay, in contrast to when you pay with credit, which sort of extends your purchasing power. Credit is good, especially if you can purchase with a zero interest, because you are effectively delaying your expenses, hence, improving your cash flow at that exact moment. It gives you the power to purchase a certain item even when you don’t have the money to do so.
This is very advisable and most widely used by those who have a scheduled income, say, employees who will always receive their paychecks on the fifteenth and end of the month. If they need to buy something urgently on the 8th day of the month, for example, they can do so with credit and pay it on the next payday. However, spending on credit may lead you into the classic trap of spending more than you can afford.
The most important thing is to be conscious of how much you can spend, and remember that whether you spend cash or credit, it will always be something you need to work for. So spend wisely all the time.
Credit: Ambro
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