Cash Versus Credit Essay

852 words - 3 pages

“When you use cash instead of plastic, you spend twelve to eighteen percent less because spending cash hurts” (“Dangers of Debt”). The issue of cash versus credit has become a big issue in society today. One may see benefits in using cash, while another may see benefits in using credit. However, the statistics are in favor of using cash, not credit. Using cash is a better decision than using credit, because cash is harder to let go of than credit, credit makes one go into more debt, and credit has risks and fees.
“56% of teens agree that it is easier to buy things with a credit card than cash” (“Dangers of Debt”). A piece of plastic does not mean to anyone. It is a lot easier to let go of money when it is in the form of a card that you swipe, than if it is in the form of paper money that one actually has to let go of. “Researchers studying the neurological impact of big purchases hooked up an MRI to participants and watched their brainwave activity. They found that when people spend cash it neurologically registers as pain” (“Dangers of Debt”). One can actually feel and see the cash when they spend it; that is something that one will not see or feel with a credit card.
“Americans owe $850.9 billion in credit card debt per household in 2013” (). Debt is among one of the most prominent reasons that using cash is wiser than using credit. Many people will spend money on their credit cards thinking that they will pay it off at the end of the month, but, in reality, that rarely happens. The credit card companies trick their customers into believing they will get rewards, but the interest that has to be paid on credit spending completely overruns the rewards that are promised. “The average family owes $8,000 dollars in credit card debt” (). If one makes forty thousand dollars a year, that is 20 percent of their anual income. That is a lot of money! McDonald’s is a prime example of why using cash is more beneficial than using credit. “McDonald’s found that people spend 47% more when using credit instead of cash” (). Sure, McDonald’s is cheap in the first place, but if you apply that towards somewhere more expensive, then cash is obviously the better choice.
One thing that credit card companies fail...

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