Using Cash vs. Using Credit
If you're new here, consider subscribing to my RSS or Email. Thanks for visiting!
Over at MoneySavingMom.com, Mom gives us her take on using cash over credit. We both see eye to eye on this point. Anyway, her post is excellent and caused a great discussion of over 150 comments. Here’s a brief snippet:
Cash or credit? Why or why not?
I’ll start: We don’t have credit cards, we don’t want credit cards, and, like Dave Ramsey, we think buying on credit is stuupiid (insert Dave Ramsey’s voice on that last word for the full effect!).
We stick to cash only for every purchase possible (yes, real dollar bills and coins, people! Remember what those are?), pay our bills with checks (though we’re looking into switching to online bill paying), and use our debit card only when necessary (online purchases, etc.).
And yes, I know we’re missing out on the free hats, umbrellas, T-shirts, and other cheap perks the credit card companies give out when you sign up. Um, ever wonder why they give out those freebies in the first place? It’s because most people will pay them back for at least 50 or 100 hats or umbrellas or T-shirts in the years to come. Sorry, but you can keep the “free” perks.
We’re also missing out on the higher cash-back percentages we could get by buying on credit. However, we decided to switch from a cash-only system to using our debit card almost exclusively for six months about two years ago. Guess what? We found that we spent a lot more money when we paid with a card. It was so easy to whip out and use. Pulling cash out of an envelope means we think a lot harder before we make the purchase. Do I really need this? Do I have the money for this? Can I buy it somewhere else for less money?
