Spending with Cash or Credit Has Benefits and Drawbacks for Atlanta Shoppers

Credit cards bear the brunt of the blame for our overspending - sometimes deservedly, sometimes not.

Sure, paying with plastic can make it all too easy to make impulse buys - leading to credit card debt and an empty checking account. But for some folks, paying with paper makes it too easy to lose track of where all that money's going because, unlike with credit, there's no statement to hold you accountable at the end of the month. So how do you know what's right for you - cash or credit card? Take a look at your spending habits, say Atlanta bankruptcy attorneys.

Many people swear cash curbs overspending because you have to count it out. Whereas you can buy one thing or one hundred with a simple swipe of your credit card, cash means you have to actually fork over more money for more purchases - forcing you to weigh each buying decision carefully. It can also help with budgeting, if you only allow yourself to spend what's in your wallet. On the other hand, once cash is out of the bank account and into the wallet, many folks lose control. They feel that, because it's there, they might as well spend it - whether it's on something they need or something they simply want in the moment. Another downside to cash is the potential for theft. Unlike with a credit card, you can't call up your bank and tell them to cancel your paper money - once it's gone, it's gone.

Credit is often portrayed as the bad guy of spending mediums, and for good reason. Swiping a card is a lot less painful than parting with physical money, making it easier to overspend. Paying with credit also means that you can buy things whether or not you've got money in your account. If you still don't have the funds when the bill comes, you'll have to pay interest - and it doesn't take much before you've got a growing debt. On the other hand, credit can be great for unorganized spenders. Look at your monthly statement as a record of your financial habits and analyze it to create a budget or improve your money habits. Credit cards are also much easier to replace when lost or stolen.

In summary, there are pros and cons to every spending plan. Use your financial habits to determine which method works best for you, even if that means using a mix of cash and credit. And by all means, if one way isn't working, then go back to the drawing board. And if you're at a loss as to how to lower debt and rebuild your finances, don't hesitate to seek help. Bankruptcy can be the most effective way to get a handle on debt so you can find a fresh financial start. Find out more for free with a complimentary personal debt analysis courtesy of our Atlanta bankruptcy attorneys. No two financial situations are the same, and we can help you identify a debt relief plan that's as unique as you are.

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