Is it better to shop by credit card or cash?

Most of us now have credit or debit cards, but the vast majority still prefer to shop with cash rather than their own card. So I think it would be interesting to find out what is more profitable and better with a card or cash.

Credit card pros

cash

Many people choose to pay by credit or debit card rather than cash, and there are some important and less important reasons.

  • First of all, credit card and card payment is generally a safer way of paying and storing cash than cash, mainly because cardholder finances are protected by debit card PINs or in the case of the owner’s signature credit card, so no one else can withdraw your card. . But, for example, in the event of a card theft, you can immediately block a card that will prevent the thief from taking money from it, even if it has learned your PIN, but if the thief steals cash, you have no way of protecting that money from being used.
  • The second reason people prefer credit cards is less important, but also quite important to most people – credit and debit cards simply look much better than cash, whether banknotes or coins. Nowadays, it is possible to create cards with special designs and their own images, which make them even more attractive to potential customers because they are beautiful and special.
  • And third, cards are now accepted virtually everywhere except for markets and very small shops, so even when you’re in a foreign country, you can pay with a card without having to convert money, which is often not the most enjoyable process.

Cash plus

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Despite these three card pros, the first of which is by far the most important, cash payment is almost always superior to card payment. First of all, paying in cash significantly reduces the risk of you over-spending your money and planning your budget for that particular purchase. Credit and debit cards in themselves encourage their owner to spend more than they want, even though you can only spend as much as you have in your wallet, and to spend more you need to go to an ATM and withdraw more money , but with a card, you can spend more, if not all, of your savings, even if they are used for the entire month rather than for a single day.

Encourage you to overspend your overall budget

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Credit cards, in particular, also encourage you to overspend your overall budget, as they have the potential to spend more money than you actually have on your credit card, or take out an interest-free loan, and you will only have to repay this overpayment the next time your card is paid. That way, you have a much better chance of significantly spending your budget and buying things that you may not be able to afford at all. So, with cash, you’ll be able to keep track of your budget more efficiently and better, and not overspend, which I think is very important for anyone trying to manage their income and expenses a little bit.

Both credit and debit card and cash payments have their pros and cons, but if you want to change your financial habits and keep track of your finances more effectively, then I would definitely advise you to start with cash because you will a much clearer vision of what your financial situation is and how much you can afford to spend, making sure you don’t overdo it and don’t need to take out a loan.