Difference Between Cash And Credit

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Cash VS. Credit Is cash really better than credit? While standing in checkout lines cash or credit is a conversation that is discussed all around the world. Although cash and credit do the same, there are still dramatic differences. People all over the world carry cash in their wallets, while others prefer to carry credit cards. Paying cash is a direct way to purchase items between the consumer and cashier. Cash or credit are both used to pay bills and purchase everyday necessities. Consumers have choices as to how, when, and what is best for their own financial situation. Money is the topic of every generation and how and what is best for our finances depends upon convenience, safety, expense, acceptability, expense tracking, debt relief …show more content…
According to Kevin Foster “the most important development in payments during the last half century have shifted from paper to electronic payments.” This gives consumers a way to pay their bills out of the convenience of their own homes at their own convenience. Paying by credit card from the convenience of their homes also gives consumers time to pay for their purchase until the bill comes due usually within a 29-day cycle. The consumer understanding their credit card statement cycle is crucial, this would be a key component in using a credit card. Credit agencies usually use a repeating billing cycle to calculate the users interest. Equally important is the ability for consumers can track their spending using a credit card. When the consumer pays off their card they are boosting their credit score and reducing interest and late fee charges as long as the customer meets their minimum payment. Knowing when to use credit cards can be a difficult decision. In any event the consumer would definitely have to cover all their options with their finances. According to Scot Schuh the consumer is typical unaware of all the ramifications of paying by credit card for goods and services, “In contrast, the typical merchant is acutely aware of the ramifications of customers’ decision to pay with credit cards.” The merchant is responsible for bank fees that is proportional to the value of the consumers purchase. This in return leads to a markup …show more content…
Just about everyplace accepts credit cards. This gives the consumer of tracking what they spend and where. Credit cards make it too easy to spend money. Just swipe the card and you can bring home the latest smart phone/tools/clothes. It’s much harder for us to let go of our hard earned cash. The physical action of handing over cash to someone else is a lot more difficult than swiping a card. Try handing over $100 cash for a pair of shoes. It’s much more painful than just swiping a

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