Cash, Credit or Debit: Which is Best?
Monday January 7, 2008
Cash, credit or debit? You're asked to make this decision every time you make a purchase, but what's the right answer? Is there a right answer? A frugal answer?
Actually, any of the payment options could be frugal with the right strategy behind it. You could:
- use cash to avoid incurring any debt or chances of overdraft
- use a debit card to avoid carrying cash (which you may be tempted to spend) and to avoid incurring debt
- use a credit card to earn rewards points and pay off the balance each month
Three different approaches, but all frugal in their own way. So . . . which approach do I take?
I prefer to use a debit card (run as credit) for most purchases because it keeps me honest. It prevents me from spending money that I don't have, and it makes me think twice about the money that I'm spending.
Which approach works best for you? Take part in our poll and share your comments.
Poll: How do you prefer to pay for purchases?
On the Forum: Debit Cards = BAD, BAD, BAD!!!
I prefer to write a check. I use duplicates, so I can easily keep up with my spending using on-line banking.
i am a senior and have used my debit
card for several years.a debit card that is used wisely can be great and i
gave it all of my credit cards because
i cannot afford them.i refuse to use\\
checks for any of my purchases.