In today's society, most people are in the habit of using their credit card to pay for their purchases. From buying a bottle of milk to investing in a new home entertainment system, many people opt to use credit cards as they feel they are more convenient. Not only does it save them the time and effort of visiting the bank or ATM to withdraw money, they also feel much safer carrying smaller amounts of money in their wallets. Another benefit that people seek from using their credit card is the accumulation of points which lead to free flights, accommodation and other goods. However, many people are unaware that their credit card habits are causing themselves to fall into financial difficulty.

Many people simply do not want a credit card; however it is often the banks that approach consumers by offering them large amounts of credit. For many people, this is an offer too good to refuse. At first the credit card feels like free money until they receive their monthly bill and soon realise that they must pay back what they spent. If the amount outstanding is not paid back to the bank within the indicated period of time, then interest is charged. By this time, many people begin to feel the stress of having a credit card and owing money they may not have. This therefore creates greater financial debt.

So the question must be asked: can using cash instead of your credit card really have its advantages? Like most things there are disadvantages but there are also advantages. Some of the key advantages of using cash instead of credit cards are listed below.

1. Firstly, paying in cash means that you are spending your own money and not borrowing from the bank. Each time you use your credit card you are spending the banks money; money that must eventually be repaid. By using your own cash, it makes it easier for you to track how much money you are spending. It also eliminates any surprises that may come in your monthly credit card statement.

2. In addition to unexpected items on your monthly credit card bill, if you do not have the funds to pay it back in full by the due date, then you are likely to be charged a ridiculous rate of interest and will continue to do so until you pay back the full amount. If you are close to your limit on your credit card and have unpaid debts still owing, then you are better off paying cash for your purchases.

3. Another benefit of using cash is that you avoid any fees. Fees such as late fees, over-the-limit charges and any fees that may be implemented by your financial institution can all be avoid by using cash. Some retailers even charge additional fees for using credit cards facilities.

4. Choosing to use cash instead of credit also means that you will not be rejected when making a purchase. Cash is accepted everywhere whereas some retailers do not accept credit cards as they do not have the facilities to use them.

5. Finally, paying for your purchases in cash may lead to a possible discount from some merchants which will help you to save even more money. This is increasingly popular in larger stores such as electronic, jewelry and furniture stores.

So you can see from the list above that it is evident that there are plenty of reasons why using cash is a much better alternative to credit cards.