Paying by cash is quickly turning into a thing of the past as more Americans are paying by credit and debit cards and skipping the hassle of carrying money — according to a new study, only one out of every five Americans reports carrying cash at all times.
Since most businesses accept cards, there’s less of a need to always have money on hand. Americans don’t have the same urgency to rush to the ATM after they’ve spent all their money since they can get by just fine with plastic.
Not everyone is thrilled with this trend, though. Financial adviser Gary Demaree worries credit cards offer too much temptation. When you pay by cash, your spending is limited to the money you have on hand — with a credit card, it’s easy to get carried away and go well over budget.
In addition, paying by credit card also has some extra liability risk. There’s the outside chance that someone could steal your identity, which is a costly and difficult problem to fix. If you lose cash, you only lose the money on hand.
Despite these issues, Demaree thinks the trend to use plastic over cash will continue. We live in an electronic society based on convenience and cards are definitely more convenient than cash.
If you use credit or debit cards for most of your spending, just be aware of the risks involved.
Source: thestarpress.com. Photo source: mobilecreditcardprocessingequipment.com.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.