The holiday season will soon be upon us all. While it is a happy time for almost everyone, it can also be a stressful time as well. One of the more stressful parts of the holiday season is all the shopping that needs to be done for family and friends.
It's always a good idea to get a head start. However, while you're out shopping for Christmas gifts, you should consider doing one thing. Buy your gifts with cash. Doing so can give you some significant benefits over putting your gifts on credit.
Perhaps the number one reason why it's a better idea to buy Christmas gifts with cash is that you're paying more when you put a purchase on your credit card. Purchasing on credit isn't just putting off the payment of that purchase until later. Instead, you are also paying for the interest on that short term borrowing.
Something else you may not realize is that certain retailers give you a discount for paying in cash instead of putting a purchase on your credit card. This may seem odd, but it's true. This will be the case if that retailer uses a cash discount program.
This kind of program benefits both the retailer and the consumer. For the retailer, their credit card fees are moved onto the consumer by including those fees in part of the billing to the cardholder. This can help smaller businesses deal with the expense of such fees that may be too much to deal with otherwise.
Another very good reason to pay in cash is that doing so is a sure-fire way to protect your privacy. This will not be the case if you instead make purchases with a credit or debit card. Companies now track all of a person's purchases made with their cards. This information is stored so it can later be used for purposes like sending targeted advertisements based on past purchases to your e-mail.
While it is claimed this information can't be viewed by just anyone, that is probably not true since it's stored in a database plenty of people within the company have access to. Your data being breached by hacking is also a threat. One large scale hack resulted in over 100 million credit card accounts being breached.
Another reason to buy your Christmas gifts with cash is that doing so will prevent you from going over budget. It's very easy to spend more than you planned on when all you have to do to make a purchase is to swipe a card. Unless you are a math whiz, you are probably not going to be adding all those figures up in your head if you make purchases at multiple stores.
With cash, however, it's far easier to stay under budget. All you will have to do is take a certain amount of cash out of the bank. When the cash is gone, you will be forced to stop spending. Unlike with a credit card, you won't end up spending a dime more than you planned on.
Racking up debt is a risky venture. One thing that can happen if you overspend and end up failing to make payments in time is your credit score could take a hit. While the credit reporting agencies won't reward you for using cash, they are unlikely to penalize you for doing so either.
Bad credit can have serious consequences for your future. You could be blocked from taking out loans like a mortgage. You may even be blocked from getting an apartment. Using cash for certain purchases, such as Christmas gifts, can help keep your spending under control so your credit isn't harmed.
These days, people tend to put all of their purchases on their credit cards. While credit is appropriate for certain things, it shouldn't be used for all your purchases. This is certainly true when it comes to holiday shopping. Paying for Christmas gifts with cash has certain benefits you should take advantage of. Doing so can save you money, prevent you from overspending, and even protect your credit.
You Pay More with Credit
Perhaps the number one reason why it's a better idea to buy Christmas gifts with cash is that you're paying more when you put a purchase on your credit card. Purchasing on credit isn't just putting off the payment of that purchase until later. Instead, you are also paying for the interest on that short term borrowing.
Credit purchases can also result in fees in certain cases. Overall, paying with cash saves money. Alternatively, the overuse of credit can suffocate your finances from all the debt and interest accrued.
You Can Take Advantage of Cash Discounts
Something else you may not realize is that certain retailers give you a discount for paying in cash instead of putting a purchase on your credit card. This may seem odd, but it's true. This will be the case if that retailer uses a cash discount program.
This kind of program benefits both the retailer and the consumer. For the retailer, their credit card fees are moved onto the consumer by including those fees in part of the billing to the cardholder. This can help smaller businesses deal with the expense of such fees that may be too much to deal with otherwise.
However, the consumer can avoid this fee and receive an additional discount of up to 3.99 percent by paying in cash. Investigate what stores have this kind of program so you can save on your Christmas gifts by paying in cash.
You Can Protect Your Privacy
Another very good reason to pay in cash is that doing so is a sure-fire way to protect your privacy. This will not be the case if you instead make purchases with a credit or debit card. Companies now track all of a person's purchases made with their cards. This information is stored so it can later be used for purposes like sending targeted advertisements based on past purchases to your e-mail.
While it is claimed this information can't be viewed by just anyone, that is probably not true since it's stored in a database plenty of people within the company have access to. Your data being breached by hacking is also a threat. One large scale hack resulted in over 100 million credit card accounts being breached.
If you want to have more privacy and keep your gift buying and other purchases completely private, paying with cash is your best bet. The retailer won't be able to track the fact you made the purchases with cash, and that information will not be stored in a database.
You Won't Go Over Budget
Another reason to buy your Christmas gifts with cash is that doing so will prevent you from going over budget. It's very easy to spend more than you planned on when all you have to do to make a purchase is to swipe a card. Unless you are a math whiz, you are probably not going to be adding all those figures up in your head if you make purchases at multiple stores.
With cash, however, it's far easier to stay under budget. All you will have to do is take a certain amount of cash out of the bank. When the cash is gone, you will be forced to stop spending. Unlike with a credit card, you won't end up spending a dime more than you planned on.
You Won't Harm Your Credit
Racking up debt is a risky venture. One thing that can happen if you overspend and end up failing to make payments in time is your credit score could take a hit. While the credit reporting agencies won't reward you for using cash, they are unlikely to penalize you for doing so either.
Bad credit can have serious consequences for your future. You could be blocked from taking out loans like a mortgage. You may even be blocked from getting an apartment. Using cash for certain purchases, such as Christmas gifts, can help keep your spending under control so your credit isn't harmed.
These days, people tend to put all of their purchases on their credit cards. While credit is appropriate for certain things, it shouldn't be used for all your purchases. This is certainly true when it comes to holiday shopping. Paying for Christmas gifts with cash has certain benefits you should take advantage of. Doing so can save you money, prevent you from overspending, and even protect your credit.
