- Credit Card
- Real Estate
I am new to budgeting and managing my own finances and have a simple question.
Is it better to use cash when credit or debit cards offers discounts. The city I live in, some shops and services offer discounts when using a credit card or debit card of a certain bank.
The problem I have with that is that I don’t like having debt. I hate seeing that a portion of my income is already set to go to someone else at the start of the month before I can even use it. Not having any debt helps me sleep better at night.
At the moment, I have some credit card debt that I need to pay in installments and a mortgage.
I discussed paying off all of the credit card debt lump sump to the bank to get rid of it, but I was advised to not do it. Note that it is 0% as long as I pay my payments on time. And will end in a few months. If I pay early, I will have to pay an early payment penalty, which is affordable for me.
I don’t know if it matters, but I am saving for something and I believe that paying by cash will help me control my finances.
Edit: So this blew up! This was my first question on this Q/A!. Thanks to all of you so much, helped me a lot in getting a better understanding of cash vs credit card debate. I am choosing the most voted answer as the correct answer, even though other answers also provide valuable advise.