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Cash or credit: Which is better financially?

Posted at 1:00 AM, Nov 06, 2018
and last updated 2018-11-06 12:55:27-05

It's so easy to just swipe your debit or credit card, but is it a smart financial move?  A lot of times, when people swipe their card, they don't keep track of how much they spend.  

13 Action News hit the streets to ask you, which do you use?  

The majority of people we asked said they only use cash because it's easier to budget.  

"It's harder to let go of," says one cash user.  

"You can definitely feel the difference," says another. "If you run a credit card, it doesn't feel like money. but if you have cash in your hand, you're more cognizant of how much you spend." 

There's a term for that. It's called the "pain of paying." When you see your hard-earned cash leaving your wallet, you're less likely to let it go.  

According to a report by Value Penguin, people are willing to spend 83% more on some purchases when they're paying with a credit card, instead of cash.    

"In most cases, if you really want to stay disciplined, using cash is best," says Ch. 13 Financial Analyst, Steve Budin.  

Budin says in most cases, cash is best because it's easier to budget and it's safer.  

"The smallest swipe of your debit card can empty your bank account very quickly," says Budin.  

Using your card could be better when it comes to bigger purchases, especially if you have protection and rewards.