Cash or credit is a far more complicated answer than one would think. The use of a credit card can have disastrous effects on the financial health of many a consumer. One reason is because credit cards can encourage reckless behavior that leads to dire financial consequences. This is why reputable debt reduction companies like Infinity Group Australia advocate for the use of cash.
Founded by top-tier broker Graeme Holm. A finance professional with about 17 years of experience in the market, Infinity Group is dedicated to bettering the financial health of its clients. Infinity group also serves as a wealth creator, property investor, and retirement strategies. Holm and his team help many people escape the gloom of debt and find their way to the light of financial security. According to Holm one way to do that is by using cash instead of credit.
Cash provides more accountability than credit for a few reasons. Using a credit card is such a simple action many swipe without thought. They also lose track of how often they swipe which can lead to problems later. Cash is much more physical. It breeds caution simply by making transactions take longer. As one counts out the money they truly understand the weight of their expenditure. They also may decided not to got through with the purchase. Credit processes to fast for second thoughts.
Cash is also a lot easier to track. One notices the lack of funds when using cash, they also get a more accurate idea of what they have left. Also, credit cards use credit in transactions. It grants instant gratification, and allows consumers to avoid the hassle of waiting. But it also means spending money one does not have. As one can only spend what one has, cash prevents consumers from building up a credit bill. It also breeds caution as they have to wait for funds to accumulate, and that wait my cause second thoughts.
Credit cards also contain pesky fees. Some are hidden and one does not find out about them until later. Some are the required interest payments companies tack on. Such payments, late fees, and hidden fees put the ability to pay off debt farther out of reach. Using cash can solve so many problems and help consumers get back on track. It is a far more responsible medium of exchange, and can break bad habits that generate from the use of credit.