There are plenty of people who believe that credit cards have always been around and further to the point, that having a credit card is pretty much mandatory, signifying that those who don’t have credit cards are those who are either not creditworthy, or have destroyed their credit through mismanagement, or are just clueless. Nevertheless, there are those people who understand correctly that credit cards while having their advantages such as being available to pay a huge unexpected expense, or the need to have such for other emergencies, basically entice people to spend more for goods, services, and entertainment than they would if they were paying just in cash, for the truth of the matter is that cash expenditures feel very real; whereas, credit card expenditures don’t, because not only do credit cards not have to be paid off immediately, but oftentimes the payment to credit card debt can be extended for months upon months, and even years, though those not paying in full their credit card bill each month, will be charged interest, and if late in that payment, appropriate penalties.
All of the above indicates that those who know that they are on a tight budget should consider that rather than looking to a credit card to resolve their difficulties, they should more appropriately understand that the use of credit will actually add to their burden, especially when that usage involves an increase in expenditures because they lack the discipline to walk away from purchases that they don’t really need to make. This indicates that those who make it their point to pay cash or to use a debit card for all that they purchase are going to spend less than those who have the same amount of income, but utilize credit cards, because cash, necessitates the spending of less, for a deficit, is not permitted, which is why more people need to comprehend that while having credit has its place, using that credit, is the type of temptation that can create all sorts of havoc and may ultimately lead to lasting regret.
On the other hand, all those who sell goods or services to the general public are grateful for credit cards, because they know that despite the fees that the vendor must pay for the utilization of those credit cards, they will sell more goods or services than they would if credit didn’t exist. Indeed, it just seems like human nature that people want what they want and utilize credit cards because they don’t care so much about the bill that they will have to pay, for that won’t happen today, but will be postponed till tomorrow.
So then, it would be one thing if everything that we spent money on really was necessary, but the truth of the matter is, that it is not, which is why those who have credit cards are subject to being irresponsible with such, and thereby end up buying more than they would, if they didn’t have credit, or if they exercised the discipline not to use credit so much, which is why those that pay only with the money which they have in hand, spend less, while also not having to suffer from paying interest on that debt, because they keep everything on a cash basis.