Prefer Cash or Credit for Daily Use Items: A Comprehensive Guide

The decision to use cash or credit cards for daily purchases is a widely debated topic. People have different preferences and reasons for their choices. In this article, we explore the advantages and disadvantages of using both cash and credit cards for daily use items, providing insights based on real-world experiences and expert opinions.

The Scam of Not Accepting Cash: A Dog Adoption Experience

A common scenario where the preference for cash versus credit cards becomes evident is in adopting a puppy. Recently, I encountered a situation where a person was trying to adopt a puppy using a credit card but was refused because the puppy's owner did not accept them. This experience highlights the importance of understanding a merchant's payment preferences when it comes to purchasing items that are commonly paid in cash, such as pets or daily use items.

My Experience with Credit Cards Over Cash

Prior to this, I had only started using credit cards over cash for the past year. Interestingly, I had a 100 bill in my wallet for an entire year simply because I never managed to use it. This experience taught me that for smaller amounts, such as those under 5-7 GBP, using cash is still preferable. However, for larger transactions, the convenience and added security of using a credit card are undeniable.

I firmly believe that cash should not disappear from use anytime soon as it provides an alternative payment method in emergencies or during transactions where other forms of payment might not be accepted. While cash provides flexibility, it should coexist with digital payment methods to cater to all scenarios.

Embracing Digital Banking for Daily Purchases

Today, daily use items are often purchased through digital banking, such as PayTM and other similar services. These platforms have made transactions much smoother and more accessible to a wide range of stores. Digital banking offers numerous advantages, including convenience and broader accessibility.

Advantages of Using a Debit Card

I use my debit card provided by the bank for most of my transactions. However, I have started avoiding terminals that require swiping the card due to concerns about hacking and security issues, especially on self-service gasoline pumps. There is a need for these systems to transition to chip-based or contactless technology to ensure better security and convenience.

The Benefits of Using a Cash Back Credit Card

For daily use items, I prefer using a cash back credit card when possible. It is much easier to track and understand where I am spending my money, making it a valuable budgeting tool. With autopay set up for my credit cards, I can avoid late fees, ensuring that the monthly bill is always paid in full. Although I do pay an annual fee, the cash back from the card company more than covers this cost. Credit cards are powerful tools when used responsibly, but like any tool, they can be harmful if not used correctly.

Conclusion: Balancing Cash and Credit

Ultimately, the decision whether to use cash or credit for daily use items comes down to personal preference and specific circumstances. While cash offers flexibility and privacy, credit cards can provide convenience, security, and valuable benefits like cash back rewards. By carefully considering the pros and cons, individuals can make informed choices that best suit their needs and financial goals.