Pay Now or Later?
Getting a credit card is easy so its not a surprise that credit card debt is a BIG problem. In fact, credit card debt is at an all time high. Dollabuzz discusses is it better to use cash or credit and the truth about credit card rewards.
Today, we are going to cover:
- How using your credit card makes you spend more money
- Why getting into credit card debt is easy to do
- The truth about cash back rewards and,
- Why cash is king
Ok Dollabuzz readers, Let’s get started!
1. Using a Credit Card WILL Cost You More Money
In addition to the large amount of interest you will pay, it’s a scientific fact that you will spend more when using a credit card. I know, I know… You’ll pay it off at the end of the month. Everyone says that. No one says, “I’ll let the balance sit there and rack up over $5,000 in credit card debt.” Yet it happens.
Why does it happen? Because there’s an emotional difference between paying cash and paying with the ol’ piece of plastic. Paying with cash is more difficult emotionally while credit cards are…
2. Easy Like Sunday Morning
Anyone can pull out their credit card and “charge it to the game.” This is because you don’t feel it. It is that attachment that everyone has to money. You “pay” for drinks at the bar, but you don’t really pay. Not yet. You get a statement at the end of the month that says “pay this little amount here” and that’s it.
You lose your credit card and some scumbag goes on a shopping spree and you call the credit card company and (hopefully) the charges are taken off. There’s no emotional attachment to the plastic, unloving credit card. Getting a credit card is so easy that even pets can get credit cards.
Credit cards are easy to use because there is no emotional attachment to the credit card.
But Mr. Dollabuzz I earn cash back on every purchase I make. That is nice to think but…
The Truth About Credit Card Rewards
Dollabuzz believes cash rewards are a scam especially cash rewards. Mr. Dollabuzz, you don’t know what you are talking about! I get my cash rewards! How do I know cash rewards are a scam? First off, is a credit card company really going to give you “cash back?” No, because if they did it would really cost them money. These companies are in the business to make money and not give cash back.
Credit card rewards are simply a marketing ploy designed to get you to spend more of your hard earned money. These rewards are similar to the auto warranty in the fact these products would not be offered if they were costing the the company money.
We at Dollabuzz are in the belief that if it sounds to good to be true it probably is. Let’s take a closer look at the true cost of your credit card “cash rewards.”
Annual Fees-Pay To Play
Annual fees will often negate any cash back you receive. Check the fine print for the annual fee. Please note that’s fine print and not phine print. We at Dollabuzz prefer the phiner things in life like phine wine and phine dimes. Let’s move on…Finally!
Expiration Dates- Times Up
Expiration dates are the small print that will eat into your rewards. The catch is that after a certain amount of time, the points start expiring. So much for your free rewards if you don’t use them fast enough.
Low Caps- Hard Work for Chump Change
Low caps are another way your cash rewards are limited. They may promise you cash back, but they impose a limit on how much you can get. If they promise 1% cash back and have a $500 cap, then you’ll have to spend $50,000 to get $500. That’s too work for some chump change.
Here is some knowledge. Owning a credit card you will have the privilege of of paying thousands of dollars in interest over the years. Even if you pinky swear and cross your heart to pay it off every month, all it takes is one lost or missed payment. If that happens, your interest rate is hit up and you get pimp slapped with fees. NOT how you DOLLABUZZ!
Additionally credit card companies are the subject of numerous complaints.
Citi Double Cash Card
At Dollabuzz we want to cover both sides of the coin. The Citi Double Cash Card appears to be a highly reviewed card due to the cardholder “earning cash back twice on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.” There is also no annual fee associate with this card.
Ok. Great. Wow 2%. If you are one of the few people who truly pay off their cards every month then fine. Maybe this is a good idea. Just remember that you will probably spend more than if you had paid cash, and a double cash bonus will do very little in helping you achieve your personal finance goals.
At Dollabuzz we want to see you succeed and become a millionaire.
We have yet to hear or read about a millionaire who said 2% cash back was the key! However, the math shows that staying out of debt and away from credit cards will go a long way towards YOU becoming a millionaire. Now, on to my favorite topic…CASH MONEY!
Cash Rules Everything Around Me…
And Should Rule Everything Around YOU
Above are links to a few hip hop tracks focused the money. Dollabuzz always looking to provide entertainment for the readers!
Money and cash are referenced throughout pulp culture and especially in music. Why is that? It’s because of the emotional attachment we as humans have to money and music fuels our emotions.
Peel off a couple 20s to pay for drinks and now you feel it. You feel those crisp twenty twin twins, and handing them over is never as easy as pulling out that cold, hard, plastic card. Cash money is not easy to come by. You lose your wallet with some cash money inside and your week is ruined. It’s personal.
This is why you should always pay with cash whenever possible. It’s hard to spend that cash, and you’ll spend less than if you’d used the credit card. You and cash have a bond, but the credit card does not know you. That credit card is going to charge you AT LEAST 10% on everything you buy. Cash money don’t play that, because you and cash money is tight like hallways.
The decision to pay in cash or by credit card is an easy decision. The key is to plan ahead and to make sure you have cash on hand. Your debit card is okay, but you will likely spend more than if you’d paid cash. Don’t use your credit card and you will have a Dollabuzz. The answer to the age-old question of “What’s in your wallet?” should always be:
Dollabuzz Your Finances
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