This is an ongoing debate repost to McDonald’s and you’re looking to buy ice cream, what are you doing? But you pay cash or credit? You may not have the cash on hand and you’re forced to pay with credit but you get that little side where you feel like spending that $2 for the ice cream isn’t really worth it on credit right? There are some situations where cash outweighs Credit, and credit outweighs cash, and credit outweighs cash.

Let’s take a look at the pros of cons of both credit and cash.

Cash Pros

  • Cash is convenient. You have a few dollars in your wallet and you spend it for enjoyment, it’s as if you haven’t spent anything at all. We say this because you won’t be able to see it on any of your bank statements quite frankly it’s a great feeling.
  • On the flip side of things, for some people counting money and just being able to feel something tangible they’re able to account for their expenditures easier. They’ll be able to budget accordingly and not overspend.

Cash Cons

  • Since cash is tangible it’s something that can be easily lost. For example, if you lose your wallet or your purse chances are if you were to ever get it back cash will be gone. It’s untraceable so makes it difficult for anyone to track it.
  • Having large sums of cash on hand for emergencies may not be easily accessible.

Credit Pros

  • Credit cards were invented so you can have accessible money at the fingerprints. Is there for those larger transactions where you feel like cash isn’t enough. You have a limit, and you can spend up to that.
  • You can use credit cards since they’re very versatile, you can book hotels airfares anything you name it.
  • It’s great for emergencies, especially for those larger purchases.

Credit Cons

  • The only downside to credit is that it requires a lot of responsibility and discipline. Easily get carried away by spending the money that you don’t have. So make sure when you spend your ability to pay it off quickly so you have no overdraft.

Is Paying Cash Easier than Using a Credit Card?

This is a pretty hot debate, a lot of people have some pros and cons for both. But honestly, it’s up to the comfort of the person and which method they primarily choose to use. There are many advantages to using credit, especially because you’ll be able to build your credit score. You get points and rewards something that you don’t get with cash. But that doesn’t mean to put everything you own on credit as well, for smaller purchases it may be more beneficial to use cash.

But when it’s time for you to choose between which is right for your cash or credit, it’ll rely on many different factors that can prevent you from choosing one over the other. There’s no right or wrong answer as to which one is the best method like we said before it’s totally based on the comfort of the person and what they feel is the most convenient.