Some people think all cash purchases are better than credit cards. They think that the credit will only ruin their financial standing.
Dallas, TX (PRWEB) November 02, 2013
Debt Consolidation USA pits cash and credit purchases against each other in the article they published last October 28. Through the article entitled “Smart Spending Tips: Buying With Cash VS Credit,” the debt relief website wishes to educate consumers about the pros and cons of these two purchasing methods. Their intention is to help their readers make smarter choices about their spending.
The article narrates how some people think all cash purchases are better than credit cards. They think that the credit will only ruin their financial standing. However, the article wishes to debunk this belief.
Starting with cash transactions, the article explains how it can really effectively keep consumers from debt. It also makes them spend only within their financial capabilities. Naturally, when the cash runs out, the consumer will stop spending. It also encourages the consumer to think about every expense before buying. Parting with cash is psychologically more difficult so the spending will be kept from being too excessive. All of these will make it possible for the consumer to stick to their budget.
However, there are also disadvantages to spending only in cash. The main problem is the lack of credit history. The article explains that while consumers can use personal loans to put data in their credit report, credit cards are easier because there is no need to keep on applying just to borrow money. Having no credit history will lower the consumer’s credit score and that will keep them from enjoying certain financial and loan opprotunities. Also, the article states that stolen cash is gone for good. A stolen credit card will not be as damaging - at least if the consumer acts quickly.
For credit cards, the article discussed how the credit report problem will be solved. Also, the consumer will benefit from their reward programs and will have a bigger purchasing power for emergency situations. Not to mention the transactions that cannot be made without cards. These and the convenience of a cashless transaction makes it appealing.
However, credit cards will put the consumer at risk with debt. Not only that, it teaches bad financial habits like being impatient when it comes to purchases that the consumer cannot afford at the moment.
In the end, the article explains that both of these are necessary so consumers can maximize the benefits of smart spending. They advise that cash must be used for most purchases. But credit cards must be used every now and then - at least for the purpose of having adequate credit history.
To read the rest of the article, click on this link: http://www.debtconsolidationusa.com/creditcarddebt/smart-spending-tips-buying-with-cash-vs-credit.html.
To learn more about debt, debt relief and various personal finance lessons, visit Debt Consolidation USA.