Cash Vs. Credit Cards Vs. Debit Cards (Which Is Better?)

My cash-only experiment recently ended. Now I use a rewards debit card for about 99% of all my purchases, using cash only when cards are not accepted at all (at certain restaurants and bars, for example).

I don't like using credit cards any more, because there is the possibility of spending more than you have in your bank account, and I hate the idea of owing money at interest.

I don't like using cash because change adds up fast. It is very inefficient. Plus, paper money is filthy and disorganized.

So my system works well for me. With a debit card, the money is debited from your checking account immediately, and you can see most transactions instantly by logging into your account online or from your mobile phone. This gives me the control I need, encourages responsible spending (since I can't spend more than I have), and doesn't involve any of the inefficiencies of carrying physical cash.

So: cash vs. credit cards... Cash wins, because you never become indebted to a sleazy credit card company.

Credit cards vs. debit cards... Debit wins, for the same reason.

Debit cards are the winners here, hands down. What do you think, though?

Outlaw

Comments

[Anonymous]

Numbers in a computer system has no value. Therefore, digital money has no value. Physical cash has value; however, physical notes that has no redeemable tangible substance have no value. U.S. Federal Reserve notes have no value because what is printed on it. It is evidence of nothing. The U.S. Federal Reserve (private bank) produces money out of thin air (no value). In all honesty, the monetary system is corrupt. Corruption is built into the monetary system. Personally, money is the very last thing on my mind. Therefore, I'm less corrupt than any other American citizen.

[Claire]

What do you do about a debit/check card? does it make a difference if you choose "credit" over "debit" when using it?

[Prolific Programmer]

My debit card doesn't have purchase protection, while my credit card does. If I should deal with a unsavoury merchant who won't behave in accordance with human decency, my credit card company will not hold me liable for the amount. With a debit card, the money's gone and so won't be returned.