A problem many people have with credit cards is over spending. . The “I’ll pay it later” is much easier than saving money for that expensive purchase, and most of the time, something comes up that prevents us from paying it completely when “later” actually arrives. When using plastic for purchases, however, you are less likely to drop your card on the floor while pulling out one of your other credit cards like what often happens with cash. Have you ever stood behind someone in the grocery store line, and as they’re reaching in their wallet or purse for a $20, another couple of bills happens to fall out? Losing cash means it’s gone forever (unless some really nice soul sees it happen and gives it back to you!) but you do have some additional security when your credit cards are stolen.
The biggest disadvantage of going cashless is the amount of interest you’ll pay when you don’t pay off your balances at the end of each month. It may be extremely convenient to swipe your card everywhere you go, but when your statement comes you better hope you have enough to cover it or else each of your purchases are going to cost you well more than the price tag indicated! Deciding whether to carry cash or go “cashless” is a personal decision for now, as we still have the ability to use both. It’s hard to say whether or not we will ever be forced to use only plastic, but you can bet if the credit card companies have their way we will become a cashless society! Until then, become familiar with the advantages and disadvantages of each option, and decide which will work for your personal financial habits and discipline.
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