Do you know why many businesses choose to accept credit cards? It’s not for their convenience, it’s for their bottom line. Studies have shown that when consumers pay with a credit or debit card they tend to spend more than they would have had they paid with cash.
My first advice for individuals trying to get out of debt is to first stop spending. The second is to switch to a cash based system. When presented with the decision of physically handing over cash for a purchase, I have found myself pausing to decide if the item was really worth the money. With plastic, I’m usually more concerned with how quickly I can complete the purchase.
Alas, it seems that we are all marching towards more card use and less cash use. Check out the infographic below on our shifting spending habits from cash to credit.
Via: Kaiku Finance