This question is a common one among many people. One reason why this is a valid concern is because we all need a certain amount of cash each month in order to help take care of the basic necessities and keep our homes, cars and health care dependable and ready for emergencies. With today’s economic conditions more people are asking themselves the question what is better cash or credit.
If you ask someone who is planning on retiring what is better cash or a savings account? They will probably tell you that a savings account will give them enough money to live on until they get old. That may be true, but once you reach retirement you will only have your savings account to fall back on if you lose your job. With a credit card you will be able to charge things and use the money from those charges to build up your credit. So basically you are using your credit card to extend your credit and as a result you will get more interest and spend more money than if you were saving.
On the other hand, when we are younger we have lots of credit and very little risk. We can borrow lots of money and we can buy pretty much anything we want. However, our credit limits at this point are usually low and our credit histories are not so good. Our debt grows as we carry on with our spending. Eventually this can lead to financial problems if we do not change our habits.
On the other hand, saving is a much better idea. You can make a significant dent in your debt and increase your savings account over time. Your money can be used to invest in things such as homes or vehicles. You can also save for retirement. This gives you time to enjoy your savings and not worry about wondering how you are going to make payments each month.
As your money grows you may find that you have more options available to you and it becomes easier to choose between them. For example, if you have a lot of credit cards with high interest rates but high savings account, you can consolidate those accounts into one low interest rate loan. This allows you to take all your small monthly payments and combine them into one payment that has lower interest and is more convenient.
What is better cash or credit? It depends on your situation. If you have a lot of credit card debt and are not making enough interest payments, then cash is probably the way to go. If you have a lot of cash and low savings account balances, then you will be better off by saving. If you do both, you just have to make sure that your expenses do not exceed your income.
In conclusion, what is better cash or credit? It depends on your situation. If you are short on cash and have many options available to you, cash is probably the way to go. However, if you have a high savings account and a lot of credit card debt, then you may want to consider saving up for a rainy day. Both situations have advantages and disadvantages, so make sure to determine your own personal situation.
Overall, what is better cash or credit? It really depends on your situation. If you are in debt, then by all means saving up and using cash is the way to go. If you are in a situation where saving up is not an option, then you definitely want to consider saving up for a rainy day.