Benefits of Cash
Cash does have some major downfalls but in some ways it can be helpful. When only using cash you have to set a budget for spending on food, gas, bills, and save what is left over. This is a spending plan that you should map out every month to control your spending and ensure that you cover you needs and save. If you aren’t doing this then you are not tracking you money properly, you can over spend in one area and end up with nothing saved. You won’t have a clue where all your money went since there isn’t a way to track cash and most people don’t hold on to receipts for long.
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What’s Bad About Credit
Using credit does have downfalls as well. “I have a card with extra money to spend” is how some people look at credit cards. This mentality makes it easier for someone to spend money on the card and go shopping which leads to overspending. It is mentally harder for a person to part with a big bill of cash but once that bill is broken down into smaller bills it also becomes easy to let the money get away from you. At the end of the day you are responsible for your spending habits, so whether you use cash or credit you need to be responsible enough to budget your spending and keep track of what you spend money on.
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Credit cards also have interest that must be paid on top of what you borrowed off of the card. For example if you spend $100 and the card has 10% interest the next month you will owe $110. This interest is added on a monthly basis so what you owe will increase every month until you pay off the balance in full. Most credit cards give you 30 days after the purchase to pay off your balance before they will charge you interest. So if you pay off your balance ahead of time you won’t have to worry about paying any interest at all!
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At The End of The Day
Everyone has a different situation they are going through but we all live in the same world. The world we live in today WILL require you to use your credit at some point in time in your life because you won’t have the cash to cover the cost of something. You could need a loan for a house, a car, replacing a transmission, college, or money for bills because you lost your job. The only way to make sure you can get approved when you need something and pay as little interest as possible when you do is to start building up and establishing your credit now so it doesn’t hurt you in the future.
Contact:
Clean Slate Credit LLC
Owner-Will Frazier
334-430-5296
www.cleanslatecredit4u.com
