Knowing which payment method to use is sometimes something I find myself confused about. I feel that when I actually pay with cash I feel the value of the money I am spending rather than just swiping my little plastic debit card without a care. So lets weigh out the pros and cons of using with cash, debit, or credit. Cash is a great way to avoid overspending. We can choose a specified amount we are willing to spend and carry it with us and stop spending when we are out of cash. However it does carry the risk of being stolen or lost. Debit cards also provide easy record keeping and almost every accepts this as a payment method making it very convenient. Unlike credit cards, you automatically debited and don't have to pay at a later date. It is important that you make sure you know your checking account balance before using the card because it can decline or you can be charged an overdraft fee by your bank. It is also important that you check into your bank's fraud protection program to get a good understanding of your debit card security incase it is lost or stolen. Credit cards are another payment method that can be used to build your credit when used safely and responsibly. If you do choose to pay using a credit card you can reduce the amount you end up paying in interest by making more than the minimal payments each month. If possible is would be a great idea to pay the whole balance to avoid paying interest at all. Many credit cards offer reward program that can be used towards travel, purchases and even cash back. Also, most credit cards offer protection on purchases and come with fraud liability protection, meaning they won't hold you accountable for any fradualent charges on your card as long as you report them in a timely fashion. In conclusion there is no right or wrong choice of payment. You can choose to use one or a combination of all three. Weighing out the pros and cons of each is a good start to help match the best ways to make payment and seeing which one best fits your lifestyle.
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