Cash vs Card

Topics: Credit card, Debit card, MasterCard Pages: 4 (718 words) Published: December 2, 2014


Cash vs. Credit Cards
Brenda Hurtado
ENG/130
October 15, 2014
James Iddings
Cash vs. Credit Cards

Which option is better for you? Caring around a credit card or having cash in your pockets? Each option is different for every person. Cash is better for people who do not know how to limit what they spend. Credit cards are for people who know to limit their spending. Because when it comes using cash, you do not have to worry about debt. Until you lose your cash, it is lost forever. But, if you have a credit card and it goes missing you immediately receive a replacement. When using cash you do not have to worry about debt. When having a credit card you are able to spend more money than what you have. When using cash you know exactly what the budget is and will not go over it. Spending money that you do not have leaves you in debt. Plus you have to pay interest with the money that you used until you pay it back. According to "Nerd Wallet" (2014), “Based on an analysis of Federal Reserve statistics and other government data, the average household owes $7,087 on their cards; looking only at indebted households, the average outstanding balance rises to $15,191.” According to "Retire By 40" (2013), “Purely Psychological. Credit cards make it too easy to spend money. Just swipe the card, and you can bring home the latest smart phone/tools/clothes. It’s much harder for us to let go of our hard earned cash. The physical action of handing over cash to someone else is a lot more difficult than swiping a card. Try handing over $100 cash for a pair of shoes. It’s much more painful than just swiping a card.” According to "The Street" (2012), “Do credit cards make you spend more? Burkeman was partly inspired by a study by academics at the universities of Kansas and South Carolina that appeared last November in the Journal of Consumer Research. This suggested that using a credit card actually changes the criteria by which you judge the product you're buying....

References: Federal Trade Commission. (2012). Retrieved from http://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards
Free Credit Scores. (2013). Retrieved from http://www.freecreditscore.com/blog/pros-cons-of-cash-vs-credit-cards/
Nerd Wallet. (2014). Retrieved from http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/
The Street. (2012). Retrieved from http://www.thestreet.com/story/11720071/1/6-ways-credit-cards-are-better-than-cash.html
Retire By 40. (2013). Retrieved from http://retireby40.org/7-compelling-reasons-cash-credit/
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