Cash Versus Credit
CASH VERSUS CREDIT
Cash and credit are the preferred methods of payments in today’s society. Some consumers only purchase with cash, while others enjoy the convenience of using a credit card. There are advantages and disadvantages to using both credit and cash. Understanding the benefits, and drawbacks of both, should make it easier to decide which method is best for you. Managing your money can be a challenge whether you are using cash or a credit card. For example, using your credit card and making on-time payments can develop a positive credit history. When using cash, it can help to avoid over spending. Using cash can have a better benefit over credit, because it can make it harder to fall into debt. Paying with a credit card, you have to worry about interest payments and racking up late fees. Managing your money using cash can help with identity theft. Identity theft has become one of the problems that consumers fear. According to identity theft.lifetips.com, “There are 19 new victims of identity theft every minute of every day”. “An approximate 10 million people are victims of identity theft every year.” Paying with cash has a major advantage when it comes to avoiding identity theft. Cash also presents a sense of safety because no personal information is given out. That information could be your name, address, social security number, or other pertinent information. The use of cash also prevents others from stealing, and using your credit card to make purchases, and adding unwanted fees. In recent years, the internet has become a site for criminals to obtain identifying information, such as passwords or even banking information. With enough identifying information on an individual, a criminal can take over that individual’s identity to conduct a wide range of crimes. Those crimes could vary from false applications for loans, and credit cards and fraudulent withdrawals from bank accounts. Also, cash payments can be hard
Cash and credit are the preferred methods of payments in today’s society. Some consumers only purchase with cash, while others enjoy the convenience of using a credit card. There are advantages and disadvantages to using both credit and cash. Understanding the benefits, and drawbacks of both, should make it easier to decide which method is best for you. Managing your money can be a challenge whether you are using cash or a credit card. For example, using your credit card and making on-time payments can develop a positive credit history. When using cash, it can help to avoid over spending. Using cash can have a better benefit over credit, because it can make it harder to fall into debt. Paying with a credit card, you have to worry about interest payments and racking up late fees. Managing your money using cash can help with identity theft. Identity theft has become one of the problems that consumers fear. According to identity theft.lifetips.com, “There are 19 new victims of identity theft every minute of every day”. “An approximate 10 million people are victims of identity theft every year.” Paying with cash has a major advantage when it comes to avoiding identity theft. Cash also presents a sense of safety because no personal information is given out. That information could be your name, address, social security number, or other pertinent information. The use of cash also prevents others from stealing, and using your credit card to make purchases, and adding unwanted fees. In recent years, the internet has become a site for criminals to obtain identifying information, such as passwords or even banking information. With enough identifying information on an individual, a criminal can take over that individual’s identity to conduct a wide range of crimes. Those crimes could vary from false applications for loans, and credit cards and fraudulent withdrawals from bank accounts. Also, cash payments can be hard