Wondering whether to go with the credit card or cash? Well, both have their own significance. Credit card offers great convenience and a bunch of benefits that cash does not provide. But behind these benefits and conveniences credit cards also represent a fall in the cycle of debt that may last for years or decades. So, how to decide or identify to choose card or cash what are the best time to go with each of these for your coming purchases in the future, here are the life saving tips that will help you choose accordingly.
When not to use the Credit Card
Whenever you are going to pay your income taxes, mortgage, health insurance premium through the servicer allow you to pay with your credit card do not go for it.
Because the payment with your credit card will charge you the convenience bills, this is an extra add on to your bill.
You will be in the mood that you are gaining on reward points but in the backward, you are paying more than your billing amount in the form of convenience charges.
Apart from that if you fall to pay your bills on time that again will add as interest rates, convenience charges the total will, in turn, make up more than your bill.
If you keep away your card in this case, you will be paying or you will have cost much less than used to pay with the credit card.
If you still want to go with the credit card, then negotiate with the credit card company for the medical pill payment in huge amount cases and try to make the suitable offers for your bills with the creditor's company and gets advantages with the cards in this way you might reduce the balance owed a payment plan with terms.
When you want something, but you cannot afford it. Be in reality never get into the web of the credit card in this condition especially when you cannot afford, remember that in the end, you have to clear the amount to the credit card company. For instance, you would like to dine at the finest restaurants or you would like to spend the vacation in a splendid hotel, but you cannot afford, but your credit card will tempt you to go for it, in that conditions not get into the credit card temptations.
Do not use your credit card when you already have credit card debt. you cannot afford to use your card when you already have debt. Instead, clear all these debts than adding on new charges. And make sure all your debts are cleared then get the best cards that suit you and that will help you gain a good credit score.
When to Use a Credit Card?
- Whatever you can afford you can purchase with the card to use the convenience.
- As credit cards are convenient and secured to carry than cash.
- As long you use your credit card responsibly that pay all bills on time without falling into debts then a credit card is your best friend for purchases.
- If you like to gain additional warranty or purchase protection, then go for a credit card.
- If you wish to get stronger fraud liability limits credit cards are best.
- To gain rewards or cashback credit cards are a great source.
When to use Cash?
If you cannot control temptations during purchase its definitely good to go with the cash for purchase as it will help you spend in your budget and limit and save you from falling into debt.
Remember debt is costly, do not get into temptations use wisely your card or else you will be facing grave danger called debt. As you have your credit card in your wallet it doesn't mean you go for unnecessary purchase that you cant afford, use it wisely. Focus on using the card to get added value from your purchase. Figure out the benefits you seek is worth the pay in fee and interest. If you feel it good in all sides as you can afford, will not go into debt and here to gain the added value with the card then only go for the card or else its good to go with cash.