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Cash or Credit Card?  The decision is really up to you.  I’ve outlined just a few of the pros and cons of using cash versus a credit card to shop.  I personally prefer to use a credit card, but I wouldn’t recommend using a credit card unless you know you can pay off the balance every month.

Pros to Using Cash:

*Both methods are not subject to per-transaction fees, however some companies reward customers for using cash by giving them a discount or benefit as it costs the company less to process a cash transaction than a credit card transaction.

*If the networks are down or if the power has gone out, stores can still process cash transactions.

*Carrying cash is also handy for those rare stores/restaurants that don’t accept credit or debit transactions.

*Some people become more conscious about how much they are spending when they use cash.  If using cash makes you more frugal, then that’s definitely something to take into account.

Cons to Using Cash:

*Money is quite dirty.  It’s been touched by a multitude of hands.  You want to make sure you wash your hands after handling money.

*Money can get really heavy if you end up with a lot of change.

*Cash transactions generally take more time to process than credit card transactions.

*With the exception of a few stores that give benefits to those using cash, there generally isn’t any incentive to make cash transactions (i.e. no rewards points).

Pros to Using Credit Cards:

*Transactions are usually processed quickly and credit cards are accepted almost everywhere.

*You don’t have to pay for your transactions until the due date, so it can buy you some time to get the funds if you don’t already have the funds available.

*You can earn benefits/rewards for using your credit card.

*Many credit cards also have insurances and other discounts and benefits attached to them that you could take advantage of,

Cons to Using Credit Cards:

* You pay a significant amount of interest if you don’t pay off your balance each month.  Most credit cards charge 19% interest or higher.

* It creates an extra bill for you to pay each month.

* For some people, using a credit card causes them to spend more money than if they use cash to make purchases.

It’s really up to you whether you choose to use cash or credit to make purchases.  You know your spending habits better than anyone else, so you need to decide for yourself what works for you.  Neither one is really any better than the other, but if one method helps you to be more disciplined when it comes to spending and saving money, then by all means, use that method.

Pam Credit Cards

I had a bit of a scare recently when my husband and I went camping.  When I went to pull out my credit card to pay for our campsite, my card was missing.  Things like this never happen to me!  I am generally an extremely organized person.  But, sure enough, it can even happen to organized people.

I frantically thought of all the places I’d last shopped using my credit card.  Because we were camping I was limited to using my cell phone.  Oh, and of course I had forgotten to charge the batteries before we left so my battery was dead after one phone call.  (Guess I’m not that organized, after all!)

Fortunately there was a pay phone nearby and I was able to remember the last place I had used the card.  I spoke to an employee who confirmed they had kept my card for me.  Talk about relief!  I was so glad I didn’t have to go through the process of canceling my card.

Unfortunately not everyone has the happy ending that I had after losing a credit card.  If the wrong person finds your card, they can spend a lot of money and cause a lot of hassle.  In the event that this happens to you, here are a few things that you can do:

1.  Contact your credit card company immediately and inform them of the fraudulent charges.  They will close your card to prevent any further charges.  I would recommend closing your card even if you don’t see any fraudulent charges after you have made an attempt to find your card and have called the places where you recently shopped.

2.  The next step is to follow company procedures and fill out any applicable paperwork to ensure that you will not be liable for the charges.  Be prepared to wait a while for the investigation to take place.

3.  Even if you haven’t lost your card, but you notice an unusual charge on your statement or online banking, I would recommend that you follow it up.  Even if the charge is small, it is still worth the time it takes to investigate it as whoever has your credit card number may decide to charge a larger amount next time.

4.  For information on how to protect yourself from credit card fraud and other general information regarding credit cards, click here.

Pam Credit Cards

 To save money, there a few things you should know about your credit card bills:

 1.  If you have credit card debt, pay your credit card bill more than once a month.  If you get paid weekly, then pay part of your payment every week, and if you get paid biweekly, pay it down every 2 weeks.  By doing this, you will significantly reduce the amount of interest you pay.

 2.  Another thing you can do to save money when carrying credit card debt is to pay your bill as soon as you receive it because although you won’t be charged interest on your most recent purchases, you are still being charged interest on your previous debt.  The sooner you make your payment, the more money you save on interest.

 3.  Pay your credit card bills online as it ensures your payments will be made on time.  If you can’t pay them online, make sure that you do not write any notes on your bill or it will more than likely be passed on to another department.  This paper shuffle could result in a late payment and you don’t want that!  Also, be sure to write legibly because if the company can’t read your writing they have an excuse to delay the processing of your payment, which may result in late fees and interest charges.

Pam Credit Cards

Choosing the Best Credit Card for You

Choose a card that gives you rewards every time you use it. Depending on your interests and goals there are a wide variety of rewards cards to choose from. Some financial institutions offer credit cards that pay out dividends based on the amount of money you spend. Don’t be afraid to shop around until you find the credit card that best suits your needs. Usually credit card companies offer bonus rewards for signing up. Note that you can usually get a rewards card without an annual fee so there is no need to pay to use your credit card. Also, be sure to take advantage of the in-store credit card offers that give you immediate discounts on your purchases. Make sure to pay off the balances before you owe any interest. Even if you never use the card again, it has saved you some money.

Once you have found the credit card that works for you, you need to know how to use it wisely and how to protect yourself from fraud. I have provided you with some tips below.

Read more…

Pam Credit Cards