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The Advantages And Disadvantages Of Using Cash And Credit Cards

Good Essays
Without a doubt, money is a necessity for nearly every human in today’s world. We use money to buy things we need such as food and clothes, as well as things we don’t need. There is more than one way to make a purchase. Cash is an extremely common way of buying something. What if you don’t have cash? What if you need to buy something you don’t have enough money for? This is where credit cards come into play. There are many advantages and disadvantages to using cash and credit cards. Credit cards can be used for online shopping while cash cannot. Debt is a great concern for credit card users if they are not monitored properly. Finally, credit cards are often times more convenient than using cash would be. This essay will discuss the advantages and disadvantages of using cash or a credit card.

Online shopping has become a major hit in in recent times due to improvements in technology. “Thus, consumers are able to make
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Unlike cash, a credit card allows a consumer to make purchase without actually having the money for it. In a way they are borrowing the money and paying it back at a later date. “This false sense of income coupled with an easy access to the Internet may result in compulsive and careless shopping behavior and thereby contributing to higher credit card debt.” (Basnet 2016) If someone does not pay back the amount of money they used the credit card for, they will owe even more money in the end. If someone has multiple credit cards this can be an even bigger issue. Having cash in hand is a good way to prevent accumulating debt because an individual can only spend the amount of money they physically have. They will also avoid owing money to a bank because the money they spent was not borrowed. While a credit card can be very convenient, it is important to know how much is spent on the credit card and ensure it is paid for to avoid