Comments on: Cash Vs. Credit: Which Side Are You On?

By: bargainbabe

bargainbabe — Wed, 10 Jun 2009 14:10:50 +0000

I don’t know, Diane. I’ve never had a debit card. But my hunch is no. Does anybody know?

By: Diane

Diane — Wed, 10 Jun 2009 05:45:17 +0000

Does a debit card protect you if you subsequently contest something about the purchase? I’m asking because I’ve never used a debit card, only credit. Also, my credit union just sent me a debit card to replace an ATM card. I’m a little leery about using it but plan to do so in the same way I did my ATM card.

By: Enemy of Debt

Enemy of Debt — Tue, 19 May 2009 04:11:23 +0000

Just found this article on a google search and I have to say I am completely in agreement with man vs. debt. People often throw the emotional reasons to use cash instead of credit in the trash and I believe it is because they don’t want to believe it can happen to them. (spending more than they would if they used cash)

While I agree that there are some that do not carry a balance and manage just fine, I still do not see the point in using a credit card. A debit card can do the same things and because it is tied to your bank account you are less likely to spend more. Debit cards even have rewards with them as well now!

GREAT guest article!

By: bargainbabe

bargainbabe — Fri, 01 May 2009 00:40:10 +0000

Diane, sounds like you know how to play the credit card game very well. Kudos!

By: bargainbabe

bargainbabe — Fri, 01 May 2009 00:34:06 +0000

Sounds like you have a great system, Ellie.

By: bargainbabe

bargainbabe — Fri, 01 May 2009 00:30:19 +0000

JC, I agree with you that cutting up credit cards is a bad idea – for most of us. But for folks who really cannot control their spending, it is a wise decision. Like you, I am building a credit history through my cards and rely on the detailed accounting my credit card company provides me with each month.

By: JC

JC — Fri, 01 May 2009 00:19:04 +0000

I think cutting up all your credit cards is a very poor financial decision and I wouldn’t take advice from anyone who recommends this. I am currently trying to buy a house and fortunately have good credit – partially as a result of my resposible credit card spending. Even still, the negatives on my credit score are related to not having credit accounts long enough…

Add that to the airline miles, points, etc. from credit cards, and you are literally leaving money on the table by using cash only.

Try recording every purchase you make – cash, credit, check, or debit – in a spreadsheet the same day that you make it. For me, this has caused the same reaction to spending that you have with cash–don’t spend it if you don’t have it!!

By: Ellie

Ellie — Thu, 30 Apr 2009 23:19:13 +0000

Having been on this planet for a “few” decades, I’ve learned through my past mistakes what my economic weaknesses are, and now use a combo of cash and credit cards. I use credit when I order things on-line or through a catalog, but pay bills by check (old-fashioned, I know). I also take $200 out of the bank at the first of each month, but keep the bulk in a safe place. I use the cash for food, household supplies, and the occasional movie or meal out with friends. I pay all credit card balances in full each month. I know approximately what my monthly expenditures are, and live accordingly. Sometimes wisdom only comes with age.

By: Lisa

Lisa — Thu, 30 Apr 2009 19:01:02 +0000

One of the things I just realized this year while I am out of work and trying to keep my home and credit rating is this: even at a low percentage, the finance charges each month are considered a “purchase” by you and are therefore included in the balance. So even if you aren’t making any purchases, just making payments, you are still accruing more debt! Whoever invested compounding daily interest for credit cards was EVIL!

By: Diane

Diane — Thu, 30 Apr 2009 06:17:48 +0000

We use credit cards (2) for virtually everything, pay our statement balance in full monthly, and go for cash rewards. Where one card has a 5% reward for specific types of purchases, the other offers only 2% for those same specific types of purchases. Guess which card we use. For all other types of purchases, both cards have a 1% reward. Thus, we essentially get a 5% or 1% discount on every purchase.

By: bn

bn — Thu, 30 Apr 2009 02:31:01 +0000

I sometimes use but don’t entirely trust debit cards – have heard too many stories of ATM scams and the like. Credit cards can be stolen too, but there seems to be more recourse with them then if someone gets your debit card PIN and empties out your bank account.

One thing that works for me is to put part of that cash in the back of my wallet and ‘pretend’ it’s not there until the ones and fives in the front part are gone. Sort of like hiding half of an oversized, delicious dessert in the freezer ‘for later’. If I am paid a large amount of cash I often hide most of it somewhere at home and put $100 or so in my wallet…

By: Salwa

Salwa — Thu, 30 Apr 2009 00:36:51 +0000

I use debit cards on most of my spending, let it be online or offline, and now that more and more companies are introducing ways to pay with debit cards online makes it even easiar for me. Also the new debit visa card is great.

By: Steven Rosenberg

Steven Rosenberg — Wed, 29 Apr 2009 21:40:09 +0000

I’m in the middle: I use credit cards a lot, never carry a balance but think cash is better.

My problem is that I’m always paying off a credit card bill and don’t have the cash which which to … pay for everything.

I acknowledge that you have better accounting when you use credit cards, and you also can get rewards (and I do), but I think paying as you go with actual cash is better — why let The Man know what you’re buying?

Cash! (With the disclaimer that I support cash but don’t use it all that often)

By: Caroline

Caroline — Wed, 29 Apr 2009 20:56:07 +0000

I think as long as you know you will not over spend with credit cards they are the way to go. With credit you receive points or miles for the items you are going to buy anyway.

By: The Unethical Man

The Unethical Man — Wed, 29 Apr 2009 20:25:07 +0000

I choose the credit card path over cash whenever possible. For me, it’s all about the bottomline. Cash has cash value. But a credit card with cashback rewards or air mileage gives you something extra back for spending the same amount of money. In addition, they go to bat for you if there’s a problem with a merchant. And then there’s the grace period. Cash can’t do any of those things for you. The secret is to forge a strict discipline over your finances. People work hard to attain the rank of a blackbelt in martial arts. Why can’t that hard work and discipline be applied to money? Don’t think of your credit cards as credit cards. Use them as an extension of cash only. That way the entire bill can be paid off by the due date and no interest charges will be accrued on your account. Also, I like being able to pay all my credit card bills online on the due date or one day before in order to avoid late fees. Paying online gives you an instant payment confirmation # and also eliminates the hassle of writing out a check, placing $.42 worth of postage on the envelope and hope that it doesn’t arrive late or gets lost somewhere along the way. I also never use debit cards because I do not like the idea of having 24/7/365 access to my bank funds. The money in the bank is there for a reason. Leave it be. In my eyes, debit cards are a negative convenience that ultimately hurts people the most that can least afford it. And you run the risk of paying those ATM fees. Imagine that. Fees to get your hands on your own money. No thank you. Are debit cards safer than cash? I suppose any other form of payment other than cash is safer. But without the extra rewards, you might as well use a credit card for maximum value. As a rule, I usually $10-$20 in cash with me just in case I go someplace that doesn’t take credit cards such as ARCO gas stations and my local Chinese take out restaurant. Another reason why I only use cash in emergencies is that cash is filthy. I do not like to dwell on where the cash in my wallet has been or what trace substance either chemical or biological might be on it. Many people have extremely poor hygiene, and people will put cash in the “oddest” places. Final thoughts. We must all be aware of our surroundings especially to those nearest us when making a purchase. A person seen to be carrying more cash than the next person makes him a jucier target for opportunistic robbers. People that use the ATMs also make themselves juicier targets to those that don’t use ATMs. Also, people that use cash all the time and don’t trust banks puts themselves at greater risk for home invasion robberies. Once people get a whiff that so and so keeps all their money in the house, they make themselves targets to dangerous and desperate individuals. Besides, putting money in a bank earns you interest. Your mattress does not.