Why I Choose Cash Over Credit

Ever heard of a plasectemy?

I’ve had one. It was pretty painful, but I felt a lot better after it was done.

Yep, the day Mike and I chose to cut up our plastic credit cards and switch over to a cash-based spending system turned out to be a pretty good day. Here is why…

It Eliminates Buyer’s Remorse Over Stuff You Don’t Need

When you are paying for things in cash, it makes you think much harder about your purchases. No more “spur of the moment” purchases that you are not entirely sure you can afford. If you are paying cash, whether it is actual physical dollar bills and coins or a debit card, you have to actually be in possesion of the money you are spending. And since you already worked so hard to get that money in your bank account, why blow it? Say goodbye, buyer’s remorse.

It’s Impossible to Get Into Debt

Read that again. Getting into debt is IMPOSSIBLE when you are only paying cash for things. Sure it is possible to use a credit card wisely- only on purchases you would otherwise have made and always paying the full balance off each month- but it’s also possible for that little tiny piece of plastic in your pocket to convince you to purchase just a little bit beyond your means. And before you know it- you’re in debt.

You Can Negotiate A Deal

Did you  know that you can get a deal on many goods and services by paying cash for them? You can stay out of debt and save yourself thousands of dollars just by paying cash. Read my post from yesterday about how I get a 25% discount at my chiropractor’s office because I pay cash.

It Puts You In the Driver’s Seat

Paying cash means that you are in control of your money. You get to tell it where it gets to go instead of allowing it to wander off without your knowledge. Ever get to the end of a month and wonder where the heck your money went? Paying cash will help eliminate that helpless feeling, and get you back in control of your finances.

It Gives You Freedom

What if you had a completely paid for house? What if you drove a car for which there were no monthly payments? What if everything that you owned was 100% yours, including every single paycheck you receive? Credit cards, loans, and payment plans give off a false pretense of freedom: you can have whatever you want right this minute! But reality hits the moment the ink has dried on the contract (or you’ve hit enter on the credit card pad). You’re now responsible for yet another bill. And your hard-earned paychecks are already auctioned off to the highest bidder (usually the debt with the highest interest).

How About You?

What reasons do you have for paying cash, or for using a line of credit? Leave a comment and let me know!

 

 

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One thought on “Why I Choose Cash Over Credit

  1. Pingback: Our 2 Basic Tools for Paying Off Debt | A Rich Household

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