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The Pros and Cons of Being Cashless vs. Using a Debit Card

Not having cash isn't the worst thing in the world. Many people are under the impression that they are at a disadvantage by not having cash in their pockets. While, indeed, there are certain benefits of having cash on hand (not to mention the feeling that holding cash gives you), plastic can be a surprisingly beneficial alternative when used responsibly and correctly.

The biggest difference between using cash and using plastic are the benefits that are tied to the latter. Most credit cards offer rewards for choosing to use their card. The catch is they give these rewards because they charge stores a small commission for using the credit card and stores do this knowing that people are more likely to spend more when they use credit cards. This is where your own responsibility comes into play. Plastic has the potential to always be better than cash when used properly.

On top of the rewards, which can range from airline miles to cash back, using a credit or debit card can also lower the risk of theft. When a card is stolen, all you have to do is report that it is stolen. The card is cancelled and they can't use it, and any charges they do run up are not your responsibility. Meanwhile, when cash is stolen, it is gone. There is no way to track it, no way to cancel it, no way to get it back. It's gone for good.

As can be clearly seen, being cashless isn't such a bad thing after all. Obviously, there is always the risk of debt that can be easily incurred when not paying with cash. When cash is used, debt is impossible. However, technically you are always going into debt when using a credit card until it is paid off. Nobody wants to be in debt, and so you're responsibility of using the card wisely and only buying what you would buy otherwise with it and also paying it off on time will pay dividends. The rewards of using credit and debit cards can be significant for those who use the cards responsibly.

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