Use cash or credit card? It’s up to you.

Credit cards can be a devil or angel. It give you a convenience but It come with debt. In the right way you have to use credit cards in case of convenience-never use in case of not has enough cash. In other words, don’t use credit card to buy anything that you are unable to pay in the future. I want to repeat my point – Use credit card in case of convenience ONLY.

Please think with me. Let me show you how cash is the better way. Credit cards will allow you use future cash or cash that you don’t have now. This led people to overspending, furthermore credit card debt has increased over the time. Even though credit card have credit limit but the most use it exceed this limit. In above context, I said that credit card give me money and give me a burden of debt too, not only debt, but also high-interest top up. Surely, that debt is very hard to eliminate. So first reason for use your cash first is credit card has high interest top up. Although we all know this problem – I mean credit card debt problems. But in my or your life, sometimes, you inevitably use credit card.

The second reason is if you use cash, you will find that you spending less because it’s your money. You can imagine with me if you use credit card, it like you use other people cash that led you not carefully spending. In example, if you want to buy the latest Plasma TV and you don’t have enough cash, then you must take time to go to the bank or ATM. In this situation you will not buy this TV because inconvenience. But in other way, if you use credit card, you must pay for them after. I conclude that convenient use of credit card lead you more spending too.

Let me give you some simple question for help you decide to use credit card. “Will this goods or services help you in the future or make you richer?” Item, business, seminar, or course will increase your income in the future? I usually use my credit card for some safe investment which generates future cash flow to me such as inventory, offices supplies.