There is a timeless question of cash or credit and there are no shortages of opinion on that count. Depending on who you are, you might prefer to use cash over plastic, and vice versa. There are plenty of different theories on the merits of both cash and card, but only you can decide what is better for you to use. Here is a quick and easy briefing over the pros and cons of using cash and two different kinds of plastic, and whether or not you need to have one or the other or maybe even both.
Using paper has a lot of advantages For one thing budgeting is a lot easier when you are holding the amount of money that you have to spend or in your wallet. If you have trouble with spending too much, only bringing cash money to the supermarket or department store. Another benefit of cash is that it is untraceable. If you are paranoid about people following your movements over satellite or through your card swipes, then cash is your best friend. The only problem with cash is that it is pretty easy to lose. If you lose twenty dollars, there is no real way to get it back, whereas if your card is misplaced or stolen you can just cancel it. Cash is also easier to damage or steal, and lots of petty thieves will target a person who is carrying a lot of cash.
The plastic side of things is a little more complicated. While a card can be cancelled if lost or stolen, it is a painful process to go through, and it’s going to be an issue if your card is on your wallet when stolen and falls into the hands of an identity thief you might have are really big problem. There is also the problem that cards are very easy to track, although with the cameras and smartphones today, there is really no way to truly go incognito. The benefits of cards are also many, convenience chief among them. Of course the different card types present different dangers and advantages, and we put them into two separate categories for convenience.
A debit card is like a checkbook that you can use with a swipe on a machine. The excellent thing about debit cards is that you are never able to spend more than you have in your account. The thing with debit is that you need to budget very, very carefully or you will end up with no money in your account.
Credit cards are far more dangerous. They allow you to spend as much money as you like in one moment and entrench you in debt. Credit cards are also necessary for your credit score, so having one but using it sparingly is probably a good idea, as long as you budget properly. In general don’t carry a credit card anywhere it will be stolen, as that will put you right up a creek with no paddle.