The Pros And Cons Of Paying In Credit, Debit And Cash


Figure out which one works best for you



Adulting is difficult in general, but the financial aspect of it can be a little overwhelming sometimes—especially if you’re being offered plans left and right. Not to mention there are so many different ways to pay for the things you want and need. So how exactly are you supposed to declutter the mess of information being thrusted at you?


Take a breath and read on.


Credit Cards

Credit cards can be tricky, especially if you don’t keep track of your spending. On the other hand, they can be incredibly efficient, too.



- You can use them almost everywhere, especially when you’re abroad

- It’s great in times of emergencies like car repairs or unexpected sicknesses

- They allow monthly payment schemes



- You will be tempted to spend money you don’t have

- If you don’t zero out the debt within the month, you’ll be paying extra on the roll over

- Credit card fraud is a real thing



Related: You Can Now Pay And Book Your Movies Through The GCash App!


Debit Cards

Alternately, debit cards only use money that you already have in the bank, which is great for people that are conscious of their spending.



- No risk of overspending or going into debt

- It’s easier to purchase items since security is a little more lax (no one ever asks for ID when you hand a debit card because it requires a password)

- They’re easier to get a hold of as opposed to credit cards



- It’s a little difficult to dispute and reverse a mistaken charge

- Using it doesn’t improve your credit score, which will come in handy in the future

- There are generally no rewards points associated with using them



Related: Ways You Can Afford To Travel Longer



Of course, you can always just carry cash in your pocket.



- You will physically see how much you’re spending

- It’s easier to stay within budget

- Every retailer accepts cash



- It’s a bit of a nuisance to count money and keep big amounts of loose change

- You will be vulnerable to theft

- In times of big-money emergencies, cash might be hard to come by since ATMs only release a certain amount per day




Whatever form of payment you choose, the trick is to get and stay informed before making any purchases. Also, don’t get too distracted by “buy now, pay later”—keep your head on straight and do not spend recklessly!