Cash or Credit: The Confusion

cashorcredit

Please welcome with me a Guest Post by Erika Stewart.

We have so many things that we want to achieve. There are so many things that we plan to buy when we have enough money. Good thing that we have credit cards so that when we are running out of cash, we can always rely on the credit cards to save us.

Bills can be paid using credit cards and some credit card companies offer points for every purchase made with the use of the credit card. But did it ever cross your mind to pay in cash? What is the best method to use: cash or credit? Anyhow, you will still have to pay for all of those.

The reason why some people are buried in credit card debts is because they fail to manage their spending. There are some things that are not needed and yet because one counts on credit cards and ‘pay later’ schemes, expenses pile up.

The best way to control your spending is to pay those bills in cash whenever you can. If you are short on money, credit cards will do. The thing here is that credit cards charge a high amount of interest if you are not able to pay on time.

There are things that are preferably paid by card like when you are paying for insurance policies like auto insurance. Since insurance companies, charge a fixed premium, you can charge it to your credit card.

One of the advantages when using a credit card in paying insurance is that you no longer have to go to the office to pay the premium. If you are paying for a cheap insurance, especially one that has zero interest, you will not get shocked when you get your credit card bill.

A credit card owner must have discipline when using the card. Since it is just a swipe away, one tends to over spend because you do not see the money spent. The good thing about having a credit card is that you can track your expenses such as bills, groceries, insurance that you are paying for whether it is an auto or house premium.

The downside of having a credit card is that there are annual fees, late payment charges, and you are prone to impulse buying. But these things can be avoided as long as the credit card holder has self-control and discipline in spending.

Author’s Bio

Erika Stewart is a freelance finance writer for many online publications. 

The focus of her writings are mainly about personal finance, frugal living and insurance. She has written many articles about personal finance and insurance guides that were published in different websites and weblogs.

If you’d like to be considered as a Guest Blogger, please visit the Writer’s guidelines here.

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Category: Personal Finance

  • Manykind

    Credit card debt has nearly tripled in the last 11 years
    The amount spent using credit cards has risen 26% recently
    70%
    of all credit card holders do not pay off their balances each month …
    of those people, the average balance in 2001 was $8,367. In 1990, credit
    card debt averaged $2,985 … balances have nearly tripled! Dave’s money management advice: pay off more that the minimum balance every month. (We’ll show you how) 81% of all college students have credit cards with an average balance of over $4,000.
    Dave’s money management advice: Don’t incur any credit card debt in collegeAmong those who carry a balance on their credit cards, nearly half made only the minimum payment in 2001.

    http://blog.clearyourdebt.info

  • Santanatop

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