Cash or Credit?
Whether to use cash or credit, this is an ongoing debate in Canada. Some people are in favor of cash while others find credit a more viable option. If you are confused in the selection of the better option, this in-depth comparison guide can help you to take the decision that can prove to be best in your interest in the long run.
Comparison between Cash and Credit
It is one of the most commonly used payment methods in Canada. Some of its pros and cons are:
Cash is readily available for almost everyone. It offers enhanced convenience since almost every person carries a little cash with them, which they can use whenever they require.
Cash, is a popular payment method, can be accepted by anyone. No retailer can deny accepting cash until or unless certain conditions are specified by them in case you have made a contract with them.
No Interest Issue
Since you will be paying cash on the spot for the products or services you have purchased, you will not have to pay any interest. Furthermore, there will be no issue of balances carry forward; thus, no case of interest accumulation.
Chances of Theft
If you have cash, you are more vulnerable to thefts. Furthermore, there are also chances of pickpocketing while you are in a crowded place.
Can be difficult to arrange at the Time of Emergency
At the time of an emergency, it can prove to be a daunting task to arrange cash. Many people, due to safety concerns, do not keep large deposits of cash at their home. Thus, in case of an emergency, arranging cash can be hard. You will have to rely on cards (debit or credit) or credit options to get money urgently.
It is commonly believed that if you have cash in hand, you are more likely to spend it. Ultimately it can lead to overspending. Since you will have cash with you whenever you are out shopping, you may also end up buying things merely because they are attractive but not because you actually need them.
Lack of Savings
As stated above, keeping cash with you promotes overspending. This overspending can greatly disturb your savings. Therefore, you may land in dire circumstances during an emergency.