Sunday, December 6, 2009

Cash is KING!

Post by David Held

I walk into a McDonald’s and a lady swipes her American Express for a $2.68 meal, I look to my friend and say, “Isn’t it easier to pay in cash, than worrying about paying a three dollar credit bill?” I then proceed to get my meal and pay in cash. I wonder, does anyone carry cash on them anymore? Every day I see more credit cards being used and less cash being used. The truth of the matter is when people use credit cards they feel as if they are not giving anything up in exchange for what they purchase. Even when paying the statement, the cash is never seen, it is just deducted from your bank account.

When paying in cash people tend to be more conservative with what they buy. Cash feels more value than a piece of plastic. The problem with credit cards is that they can get you into a lot of trouble, especially when you are spending money that you do not have! Paying for everything in cash will not allow you to overspend, because once you run out, you cannot buy anymore.

Having a credit card means you will spend more. “The average family today carries $8,000 in credit card debt according to the American Bankers' Association.” If you are going to buy, start spending cash, it could ultimately help your financial future!

Sources #1, #2, #3

1 comment:

  1. I totally agree that people tend to spend less when they pay in cash. Credit cards are everywhere today and that is why the amount of people in debt keeps going up.
    -Lindsey Connell