Shopping? To Pay Cash or To Charge

It is understandable when your heart flutter at the sight of the infamous sale sign at the mall. Who wouldn’t get excited at the thought of great discounts? And who wouldn’t go crazy over the lovely items on display? In fact, it is to everyone’s delight to be able to shop and save at the same time. So if you are enticed to shop as well, do so with a caution.

When you shop, it is a common idea to charge. Using your various credit cards, it is easy to pick items and search for more. However, this idea can be unhealthy. Using different credit cards means multiple debts. And with this comes different interest rates, surcharges and due dates. You have to admit that it is rather confusing when you are faced with fees each month. More so if these fees are worth hundreds or thousands of dollars.

So in shopping, consider other terms of payment as well. Paying in cash is one good way. It prevents credit card debt and promotes reality check. Using cash allows you to see your cash running out with each purchase. It will prompt you to stop spending thus saving you from excess buying and owning unnecessary possessions. Credit cards do not promote such attribute. Its charging capability innately blinds you from everything excessive.

However, in shopping, there are items worth paying for in cash and worth charging. For instance, small items ought to be paid with cash. Examples are those below $100 in price. School or office supplies, a few pieces of clothes, or a pair of shoes are examples. If you charge these little items, you would pay triple more than they really worth. The interest rate is not worth paying for months over a small item.

But when you buy big ticket items, it is advisable to use your best credit cards. Big items are the likes of television set, sports equipment and so forth. These items usually amount to a few hundred dollars. In purchasing a pricey item, big risks are involved. Along the process of delivery or payment, something awry might occur. If you charge it, your credit card is protected by law. This shields you against any fraud or disturbances along the way. But when you pay in cash, you could lose that money. Worst of all, it may take long to retrieve the amount or even never.

So when shopping, regardless if it’s a sale or not, decide whether to pay in cash or charge.