Should I use cash or debit for all my purchases and spending?

Question

I'm trying to decide what system I should use for my money. Right now I'm using a combination of cash, debit and credit card. What I am trying to do is stick to one only and use it for everything, just so I can track where my money is going a lot easier instead of looking at a bank statement, credit card bill and cash receipts.

I'm going to stop using my credit card all together because I always pay it off anyway. So cash or debit? With debit I can get a statement with every single purchase, which is nice. But cash is easier some times.

And someone brought up a good point to me, cash makes you see how much your spending, so I might save more.

Answer 1

You do spend less using cash over a card.  Card is slightly more convenient at times.  With cash you can save your change and get some unexpected savings.  I prefer cash.  Especially now days with this gas garbage.  A lot of gas stations now put holds on your debit card for $80 ( max legal limit allowed ) to reduce the chance of gas theft.  Sometimes the hold doesnt come off right away and you could be out $80 for a couple days.  Id rather just hand over some cash and be done with it.  Plus sometimes debit purcahses can sneak up on you.  Debit purchases don't always get taken out right away and if your not keeping good track you can misplace some spending.

Answer 2

Your friend is right. Use cash when you can, but debit card for large payments ; rent, insurance, etc.

Budget your cash, it's harder to say good bye to Franklin and Jefferson then a quick "swipe" at best buy.

Credit cards encourage you to go into debt at "usury" interest rates and penalties.

Check out

http://www.daveramsey.com/the_truth_abou...

Answer 3

I'll have to disagree with Dan J. If you have the cash, you spend it faster. I use my debit card every where except for restuarants because once the employee walks away with it, they can make a copy and  have a machine at home that can actually make a duplicate. The bank is not responsibile for any losses. Or you could use your credit card and if anything happened, you're only responsibile for $50 which in most cases they wave.

Answer 4

As per the second answer..... if someone steal your debit you can still have them taken off. It is no big deal to do so.

I use my debit for most everything and rarely have actual cash on me. Yes it is nice to be able to see your charges and keep things straight. You can also see if some store double charged you or something. But you can set up an online account for the credit cards and check the charges as well.

I do use my credit cards as well for bigger things and I do pay the full balance right away. One reason if you have to use credit to maintain credit.... as in your credit score. If you use you cards once in a while you can call them up and say you need a lower APR or you are going to switch companies. If you see an offer from another company they are more likely to give it to you since they can see that you actually use your cards. You don't have to use them all of the time.

My main reason I use them is that I have a couple of cards that are linked to airlines since I fly alot.Everytime I make any purchase I get flyer miles. Plus I get easier acces to upgrades and cheaper ticket prices.

But other people I know do other companies. My mother in law has a QVC one as she gets discounts from them even if she purchases groceries. My buddy is a motorcyle nut so he has a Harley Davidson one. The more he spends the more discounts he gets for buying all of his gear. You get the idea.