This should be a question we ask ourselves when making a purchase. Many people like to keep a supply of cash for making small purchases such as a cup of coffee. However, we should be paying by cash for moreIt is often too easy to pay with your credit card and deal with the bill later. However, this approach could be getting you into further credit card debt.

You should ask yourself the following questions?

Am I nearing my credit limit? Have I cleared my balance from last month? Am I able to pay off the credit card by the due date?

If you are up to date with your credit card payments and are able to clear your debts by the due date, then there’s no reason why you should not use your credit card for purchases.

If you still have unpaid debts on your credit card and are not paying your balance off in full each month, then you are better off to pay for your purchases with cash. By continually spending on a credit card which you are unable to pay off, you will only get yourself into further trouble.

Avoid Fees & Charges by using cash instead of your credit card.

Avoid paying interest on your purchases by using cash until you clear your current credit card debt.

Whilst using your credit card is a tempting and easy way of paying at the checkout. Stop and think about the consequenses of your actions. By using cash instead of your credit card, you can save you on extra fees and charges and avoid paying high interest rates.