Both have advantages and disadvantages. Here are some of both so you can decide for yourself what is best according to your financial portfolio.
Let’s start with cash. Using cash to pay for all your purchases can save you money. In today’s plastic world there are some companies that will offer you a cash discount. This saves the company time, effort and money because they know you will not default.
Paying with cash does make a difference on impulse purchases. If you cannot pay for it, you cannot get it.
Using cash will assist you in implementing that budget that you may never have gotten around to putting in. When there is less money in your wallet, you will know you have overspent on something. Even if your budget now becomes the use of envelops of cash for particular expenditures, you will be budgeting.
Some key points to remember with cash if you haven’t used it in a while, expect some trial and error types of activities. You may not have allotted yourself enough for groceries, revisit your budget and remedy accordingly. Also it would be very wise to not carry large amounts with you. Plan your day’s spending and carry that amount. Another factor when using cash is your credit score could increase since your credit cards do not reach their limits.
Now it is time to look at the debit and credit card usage. Did you know that debit card usage surpassed cash? True, people are now using debit, credit and prepaid cards in 56% of their in-store transactions. This is compared to 33% using cash and 11% using checks.
The biggest advantage to plastic is it’s convenience. This is also the more common reason to be overdrawn on your budget (and bank accounts). Knowing your credit limits and where you are with regard to that limit is very beneficial in keeping within your spending limits.
If you are trying to find out where all you money goes, plastic is a good record keeper. You get a receipt at the store and you have a printed record with your monthly statement. You can also keep track with on-line banking. Those days of when your spouse spent money and you did not find out until the bank informed you are over; the deduction is done instantaneously.
Some cards as well as business may give you rewards for using plastic. These reward points could earn you a free vacation with frequent-flier miles or other fringe benefits.
Last but not least using a credit or debit card can offer you protection on a transaction. If there is a dispute with a merchant, you don’t have to pay the charge in dispute and the credit card company serves as a middleman to assist you in the dispute.
If you are looking to find cash, do a free money search with www.CashUnclaimed.com. This database includes all state and government databases giving you the most comprehensive search available. Unclaimed property is estimated at over $25 Billion. Also, per Oprah Winfrey 9 out of 10 Americans have unclaimed money.
Having found money and with the above information it is up to you to decide what method of payment you will use when shopping.