Credit Card vs cash

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There always have been a rift between credit card and cash. Some people prefer the cash benefits and mental peace offered by credit card while some look for no-credit deals. Credit card vs cash has been a matter of debate for years. Both are used for shopping and finance management. It depends on a person how he wants to spend his money and how he would manage his finances. If you know the pros and cons of credit cards and cash, it will be easier for you to pick your choice.

The pros and cons of credit card and cash:
Family budget: This is the most important aspect to decide whether you should go for credit card or not. If you are living on a tight family budget, where your income and expenses are nearly fixed, you cannot afford to have a credit card to spend. Cash usage makes your family budget work properly. If you carry cash instead of a credit card, you cannot spend more money that you are carrying. A credit card on the contrary can lure you to spend beyond your limit.

Internet security: With the facilities offered by Internet come a vice called cyber crime. Credits cards are vulnerable to cyber crime to a great extent. Apart from that, if the credit card is lost, any miscreant can take advantage of that and can use your hard-earned money and cash benefits. In this case, cash is a safer option we have, compared to credit cards. However, these days there are various services offered by the credit card companies, which can take care of your lost card.

Accessibility: Those who travel very frequently and to different places, carrying cash is not at all a feasible option. Credit cards let them use their money as they want and where needed. There is no need for carrying lump sum amount with yourself during a trip. On top of that, most credit cards can be accessed globally.

Less stress: When it comes to less stressed money management, cash is a better option. Cash gives you the chance to spend according to your abilities. On the other hand, if you want to avoid the hazards of carrying cash, you can go for credit cards.

Where to stop: If you cannot restrict yourself from spending, you should not use a credit card. Everyone should know where to stop no matter if it is shopping or some serious investment.

Credit card vs cash is a very vague issue to discuss or debate. It depends and varies person to person.

Last Updated on 05/03/2011