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Which is the Best Way to Pay?

June 28, 2013

Money is defined as any object or record, which is generally accepted as payment for goods and services. It can come in the form of cash, credit card, or debit card. Due to the increasing number of goods and services available in the market today, the question is not only “What to buy?” but also “How to pay for them?” In this modern age, there are already a lot of ways on how to settle how much we owe. Unlike in ancient times, the only way of exchange happens through barter. Just imagine if money wasn’t invented, you may be compelled to exchange your smartphone just for a slice of bread. Now how unfair is that?

 Often, the rule of thumb in determining how to pay is: pay cash if possible. If you lack cash, then use your debit card. When the 2 aren’t available, that’s the time to use your credit card. However, this may be relative to every payer. Others prefer one method over the other. The best way to determine which really the best method to pay your dues is is to know their good and bad sides. Know the pros and cons of each method of payment by reading the rest of this article.


  1. Cash. If you have it, use it. This is not an invitation to spend indiscriminately whenever you want. Choose to pay with cash whenever possible. Doing this will allow you to audit your outflows easily and as transparent as an LCD screen protector.

Pros of paying with cash:

  • Absolutely all establishments and stores accept cash.
  • Stores usually give discounts for customers who pay in cash.
  • Your cash on hand dictates how much you only have to spend.
  • There is no need to worry about statements that needs attention.
  • It’s easier to audit your expenses when spending in cash.

Cons of paying with cash:

  • You need to pay the whole amount on the day of purchase.
  • More often than not, there are no instalment terms.
  • Carrying a big amount of cash for a big purchase is very dangerous.
  1. Credit Card. Credit is another word for debt. Most people hate the feeling of having to owe something from someone, and purchasing with your credit card is no different than your regular borrowing. To say the least, of the three, this is the best type of payment. Having a credit card on hand can psychologically entice the buyer to spend more than he should. This is why more and more people have fallen into the quicksand of credit card debts.

Pros of paying with a credit card:

  • You typically have about a month to find a way to pay for what you bought.
  • Instalment terms are possible with credit cards.
  • Some banking institutions provide points or rebates for every purchase.
  • You can do a cash advance.

Cons of paying with a credit card:

  • You can end up with a pile of debts.
  • Stores don’t often give discounts to credit card purchases.
  • Credit card holders need to pay an annual fee.
  • Keeping track of your statements and receipts can be a hassle.
  • Spending is made easy; thus your budget is compromised.
  • Not all establishments accept credit cards.
  1. Debit Card. The debit card is often referred to as “cash on plastic”. It’s like placing your money on a safe place that gives you a chance to take out whatever amount whenever you need to. All you need to do is to remember your pin code to do your purchases.

Pros of paying with a debit card:

  • Debit cards are just like cash; therefore you are eligible for the discounts some stores offer.
  • It’s safe, since there is no need to bring huge amount of money for your big purchases.
  • You can withdraw your money anytime for cash.
  • There is no annual fee or any paperwork.

Cons of paying with a debit card:

  • You can’t pay in instalments.
  • There are no points or rebates for purchases.
  • Not all establishments accept debit cards.
  • There is no cash advance feature for this mode of payment.


Now that you know the differences, the advantages and disadvantages, of these payment methods, you can now choose wisely what kind of payment method to choose for your every transaction. Be a wise spender, and let your newfound knowledge give you an upper hand when it comes to spending your hard earned money.

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