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21/06/2016

Credit Card Debt – Cash V Card

With new technology making it easier and easier to pay without using cash, it’s no wonder that so many people end up with credit card debt. At WB Debtcare we want to show how you can benefit from swapping your card for cash.

Psychological Reasons

We pay for many items using a credit card but, we often forget to consider the true cost of a product. When using a credit card it is very easy to forget that we are actually spending money. By paying with cash, you are more likely to think about the money you are going to spend. This means you are less likely to impulse buy e.g. it is much harder to hand over £100 cash for a pair of shoes versus paying with a card.

Setting a Budget

By taking out a set amount of cash at the start of each month then putting your card away, it becomes much easier to set and stick to a budget. Once you have that cash out you need to discipline your self and once that money runs out, you need to wait until the next week/month before you take out money. This means that you are never spending more than you can afford. This method also forces you to think through every purchase you make, ensuring that you do not waste your money.

Considering Your Purchases

By opting to use cash, you have to save up for big purchases, this means that you have a longer period of time to really consider what you want to buy. If you take time to think about what you are spending your money on, then you may even realise that you don’t really need it and you can spend the money on something more useful or meaningful.

Avoid Debt

Possibly the greatest reason to use cash rather than a credit card, you reduce the risk of credit card debt. When using cash, you are unable to spend more than you have, making you less likely to impulse buy things you really can’t afford. You are also in control of your spending, you can see exactly what you have spent and you know exactly how much you have left.

Credit Card Debt

Credit card debt is a huge issue across the UK, with the average UK household facing almost £7000 of credit card debt, an increase of almost £400 since last year. If you are looking to overcome credit card debt, then we can help with a debt arrangement scheme. By consolidating your debts, you will be able to pay off your credit card debt effectively. If you are looking for a debt solution, then get in touch today.