Cash Is The Best Way To Avoid Debt
Cash is becoming more and more popular nowadays due to the rising credit card fees and the way credit cards push people in the debt hole.
Just take a look at the list of fees you are obliged to pay when using plastic: annual fees, interest rates on existing balance, over-limit fees, missed payment charges, processing payment fees, fees for paying bills by phone, fees for enrolling in auto-pay services, late payment fees. And a lot more.
As you can see, tons of money go to credit card companies for transferring your money. Whereas if you use cash you only have to pay the very price of the goods or services. In some cases you can even negotiate a lower price with the merchant when using cash instead of plastic.
This also concerns not just the every day grocery shopping, but the big purchases like home and car. You save a lot more on interests and procession fees with the big sum purchase. Nowadays a lot more merchants offer additional discount or bonus awards for buyers who pay cash. This is especially vivid with the automobile industry – because they experience hard times with tons of new cars in the warehouses standing unsold.
Moreover, you can save a lot on the interests and fees with the smaller purchases, like notebooks and TVs.
You may be surprised at how many advantages and discount you can get when you pay cash in hotels, gas stations, shops. There are plenty of sites offering information on the discounts provided by tourism agencies when you pay cash or directly from your bank account.
Now imagine how much you will end up saving if using cash instead of credit cards, and how it can help you stay out or get out of debt?
The disadvantage of cash is that you necessarily need to keep the receipt of the purchased goods if you think you might want a refund or a guarantee service.
Now, check this out – if your medical insurance does not cover some procedures you need, you can pay in cash. Just ask the doctor or the hospital billing department.
So, you see how paying with credit card may cost you essential sums of money on fees and interests. Wouldn’t it be better to save that money and use it towards paying out your debts and become debt free? Now that businesses shift the processing fees on to consumers you get to pay even more with every purchase of goods or services. Students paying their tuition with credit cards may face unexpected additional fees because, again, Universities, too, shift the processing fees to students.
At last, when you shop with cash you can only spend as much as you have, not a single cent more.