by Erik Van Tongerloo

Created on: January 06, 2010   Last Updated: January 20, 2010

In today’s world most people pay most of their bills with a debit card or credit card. The convenience of paying with debit or credit cards allows individuals the ability to avoid carrying cash, and have the protection against theft or losing money.

 Paying with cash offers you several benefits you maybe never thought about. Here are some advantages of paying with cash with some information that may help you to choose the most suitable payment method:

*Easier to save money

Paying with cash provides you loose change from almost every purchase you make. Collecting these coins in a piggy bank will increase your savings quickly if you have the discipline to avoid spending loose change. By saving change, you can easily save more than $50.00 each month and you can deposit this money monthly into an online savings account or a high yield savings account.

*Staying out of debt

You can’t spend more money than you have and avoid overspending your bank account or putting too many purchases on your credit card. When you pay with a debit card and you haven’t checked your bank balance, it may happen you spend more than you can afford and go below zero. The bank charges fees which can be extremely high and you are in debt.

*Easier to limit your expenses

Paying with cash will ease how much you spend for your purchases. It is best to set limits which fit your budget and don’t take more cash with you than you want to spend. It is best you don't put more cash in your wallet or purse than you want to spend and avoid taking debit or credit cards with you when you’re out. This will help you to protect against the temptation to spend more than your budget allows.

*Getting discounts

Many stores offer discounts if you pay with cash. They don’t have to worry about fees on credit cards or debit cards and save money if you pay with cash. Many merchants offer discounts between 2% and 5% and for certain items even more. You can always try to bargain for a discount if they don’t offer you one. Paying with cash is always cheaper for every store and they receive the money immediately.

*Always accepted payment method

Cash will always be accepted if you pay in the currency of the country where you make your purchases. Checks are not always accepted and there are still shops which don’t accept credit cards or even debit cards. There are restaurants and pubs which accept credit cards or debit card but many of them accept them and you can get problems if you don’t have cash with you.

*Better protected against identity theft

Paying with cash protects you better against identity theft. The personal information they need is often only your name, address and how they can reach you. They need this information for the invoice of your purchase. If you pay with a debit or credit card, you can easier be victim of identity theft. It may be possible they discover the number of your social security card, your PIN code or other personal information which can cause you trouble.

It is incredible to believe people will pay all their bills with cash in the future. Technology has changed our lives and the convenience of payment online saves us time and also money. Paying cash has several advantages and it is worthwhile to take advantage of the opportunities which this payment system offers. The protection against identity theft may not be underestimated, and you have to weigh out the pros and cons before you decide if paying cash or another payment system will be the best option. 

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