Cash vs. Credit

When it comes to consumers’ spending, credit is king these days. With online spending a normalcy of life and the ease at which credit cards can be swiped, credit card spending has been on the rise for the past two decades. However, debt has also been on the rise in the past two decades – and there is a direct link between the two. 

Many people balk at the idea of using only cash because credit cards are so much easier to use – but that is the point. Cash is a commodity that you either have or you do not have. You cannot spend what you do not have when you are using an all cash spending plan. Once your money runs out, your shopping spree(s) end. For those looking to get out of debt, or who have dug themselves out of a debt hole and have vowed never again to return to it, cash-only spending is an ideal plan. 

However, many argue that a cash-only spending plan just is not feasible in today’s society. With online purchasing available from almost every store (even grocery stores) and online banking right at your fingertips, using a credit card is easy and can be managed. The key here, though, is “managed.” While many people go into creating a credit card spending plan with the thoughts of keeping track of their actual spending, what most people find is that this simply does not happen. There are so many “oops!” and “It’s just $5” and “I’ll borrow money from another account,” that credit card spending plans do not work for most people. It takes extreme discipline to keep track of spending when you cannot see it right in front of you. With cash, you can visually see what you have left in your wallet, but with credit cards you simply cannot. 

It has been discovered that consumers between the ages of 18-29 prefer to use plastic over cash – and this is where the highest rate of danger lies. Young consumers are getting themselves into debt early in life, and are creating spending habits that become extremely hard to break. 

For those who are serious about avoiding debt or who are struggling to get out of debt, the question of Cash vs. Credit is a no-brainer. Cash is the best way to avoid debt. By setting a strict budget and having your spendable monies on hand, you are giving yourself the best opportunity to only spend what you have and avoid debt. 


Gingold & Gingold LLC
1718 Peachtree St NW, #385
Atlanta, GA 30309
(404) 685-8800