Reasons why to use cash instead of credit cards?

Question

I have to write perswasive essay on why to use cash instead of credit cards. Please help and give me some ideas.

Answer 1

No paper trial.
You will not over spend if you only use the cash in your pocket.
No billing to worry about later.
You won't spend as much in a day shopping.

Answer 2

1. Credit cards carry high interest rates, especially if you don't plan on paying off the whole ENTIRE bill at the end of the month

2. If you were to ever get robbed, you'll have cash on hand, so it's safer. A robber wants cash, not a credit card. By the time they use it, you might have already cancelled it or reported it stolen, so they can get caught.

3. If you don't have the money to pay for something, it shouldn't be yours. Paying for things on credit cards is dangerous because it's like free money. People tend to overspend and when they see their bill later, they're like, "What the heck did I buy?"

4. Cash is best to use especially if you pay for small items everyday, like coffee, breakfast, lunch money. It annoys people in line if you swipe a card for a measley few dollars.

5. Identity theft. Everytime you use a credit card, you're at higher risk of having your card number get into the wrong hands. You can't record cash. Once you've paid in cash, you're done.

6. Receipts show part of your credit card number which thieves can easily find in the garbage. They'll put the numbers together or call the credit card company and try to pretend they're you. They already have your name and transaction history listed in detail on the receipt.

7. Many places offer discounts if you use cash. For instance, if you were to spend a few hundred dollars at a hardware store, you can ask for a discount if you pay now. They might take 10% off your total bill just for paying cash right away. This works for cars, home purchases, almost anything.

8. People that work at restaurants and nails salons, for instance, HATE getting tipped using a credit card. Their boss has to deduct a percentage off their tip to claim it. Cash can stay right in their pocket and the IRS will never find out.

Hope this helps =)

Good luck. Here's hoping for an A paper =)

Answer 3

To begin with, people don't EVER get rich spending money, they build wealth by saving and investing money.

When you begin to accumulate credit card debt (which is typically pretty expensive debt), you leave yourself open to the risk of default if anything happens, like a loss of job or an extended illness. As soon as you begin to pay late, the banks tack on late fees (typically around $30 a month), and they will raise your interest rates, sometimes with the first late payment.

As your payment record starts to falter, your interest rates can skyrocket into the high 20's, and then your balance will grow each month instead of shrinking. Before you know it you're over your limit too, and that costs you another $30 a month.

It is very, very easy to end up in over your head.

All the while, the payments you are making on past purchases, means money not available to invest or save, or to even meet current needs. Unless you have a fair amount of extra cash each month to pay off your debt AND meet all your current needs and wants, you'll be tempted to keep acruing more debt.

Now, here's the math problem you should go do, so you can see how powerful this can be:

If you buy something for $2000 on credit, at 15%, compounded on an average daily balance (I'm not going to do your homework, so you'll need to look up how this is computed), and pay the required 4% of that balance per month as your "minimum" payment, how long does it take you to pay off that purchase, AND how much does it cost you in total (by the time you pay it off)?

Now, if you put that 4%($80) of $2000 away each month to save for that purchase and put it in your paypal account which is currently paying 5% interest, how many months before you have that $2000?

Now the third equation, if you invested that $2000 in a mutual fund that earns aproximately 11% per year (aprox the historical average rate of return for the S&P500), how much would your money be worth over the same time period?

Everything in life involves a choice, but accumulating debt, save for a mortgage (which is leveraged debt) limits your choices in many ways.

Very little of what we buy on credit needs to be bought TODAY. In most cases, a little planning will get you everything you want and need, plus a cushion for safety.

And what is often missed, even by your parents, is that most of us aren't saving remotely enough to afford to ever retire. We will soon have a generation of baby boomers retiring in poverty.

Answer 4

No interest payments.

Keeps the interest rate down if banks don't have to write off so much bad debt.

Teaches you how to manage your money better by budgeting your available cash and not relying on a credit card.

Because Chase is a greedy financial institution that should be taken outside and shot.

Answer 5

Because with cash, no one but you is keeping track of your wallet. When you have a card, whoever wants to know how much you've got, they can hack on the Internet and see. The Government can also track down all of your purchases with a card. Cash is private while credit cards are not.

Answer 6

My husband and I have both savings and checking & I feel dealing with cash on hand is a smarter way to go.
My husband is Active Duty in the Military and gets 2 Dirrect Deposits mothly toour Checking account.
When his paycheck comes in, I fist buy food for the house. Then I sort and pay our bills and with the amount lest over, we figure theamount we want to save on that payday and deposite it to the Savings account.
Whatever amount is left, we prefure keeping that on hand to akes sure we think correctly...Meaning if you see your money in your hand it makes you actually think before any purchase..You look at the funds and see what that is going to leave you if you purchase that item (???) And think about is that what you really need? Or Really Want? Cause if you buy it, you are only gonna have left what is in your had.
I think us (mainly women) shop with the "Plastic" and find at times we go over and then we have a Det of usually $30 per mess up, which does add up quickly, along with the amount of you purchase.
I myself like knowing what exactly is going on with my money? And if what i am wanting to purchase is actually needed?
Best of luck to you!

Answer 7

You can't end up in debt from spending cash you have instead of money you don't.

Answer 8

When you carry a balance and pay interest it's the equivalent of paying more for the items.

Answer 9

nada easyier to carry

Answer 10

There may be something of use here.