Updated 4:12 PM PST, Mon April 28, 2014

Credit Card vs Cash

Are you spending more with your credit card than with cash? Each and every person should be asking themselves this question if they have financial issues.

Plenty of studies over the years have shown that consumers spend more money and buy products that they don’t normally purchase when using a credit card. If you’re trying to save money, one of the first pieces of advice you’ll receive is often to keep your cards at home. People are not as willing to give up actual dollar bills when making a purchase in comparison to a card. Buying a latte? It’s not as easy when you’re using cash versus the easy swipe of a card.

While cash can be lost or stolen, doens’t earn interest in your pocket - having actual cash on hand can make it easier to save. Seeing the actual currency in your pocketbook forces a realization that it’s important to keep. Becuase you swipe your credit card and return it back to your wallet, you’re essentially tell your brain that you get to have your cake and eat it too. That doesn’t mean credit cards are all bad.

If you’re ever in a situation where fraudulence takes place during a purchase, charge card companies have a statutory responsibility to shield you. Some charge cards (surely those from Amex) give you a free warranty on qualified purchases. This can raise an US manufacturer's normal guarantee by up to twelvemonth. You may even find that the card insures you for a briefer interval if a qualified purchase is misplaced, stolen or inadvertently damaged.

Many cards also provide perks. For instance, some airline credit cards allow your first examined tote fly free, and they might smooth your path through the airport with lounge entry, and precedence check in, protection screening and boarding. Other kinds of cards provide AAA assistance on the road, additional insurance when renting a car, etc.