Does Using a Credit Card Demonstrate Financial Literacy?

[alastantiger]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

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[Charles-Tim]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Work hard and smart and be able to meet your needs is all what it takes. I subscribe to Netflix, YouTube Premium and DSTV. I pay some  bills with credit card but I am not in dept since many months ago.

If you are in my country and you queue for 30 minutes to 1 hour before you are able to collect money in ATM machine, or you queue in the bank, you will be thinking of how you can avoid these delays. Using PoS for shopping has made this simple. You are literate, you know how it works and if you ou are avoiding scam, life is made easier.

Although, at times, I just do online transaction with the bank app, but that is not still cash.

[Lucius]

I would say that in some situations a bank card can be very useful, such as paying for some online services for which you cannot even use cash, or for online shopping from abroad. Therefore, I would not conclude that those who use cash are more financially literate than those who use cards, but that it all boils down to how much an individual can control himself from excessive spending, especially from buying things we don't really need.

Cards and cash have their advantages and disadvantages, and in some countries, such as Sweden, there is almost no cash at all because everyone uses cards, and more and more shops are appearing where there is no possibility to pay with cash or even with a card directly, but with the help of a special account that is connected to your bank account, and then at the entrance/exit the cameras scan you and charge you for each product you put in the basket.

No matter how someone pays, the most important thing is not to spend more than we earn (if at all possible).

[Beparanf]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

This is not an entirely true because not all credit card user is in the huge pile of debt. Some is using cash for investments and investments while generating profit more than the interest rate charge by credit card company. It’s true that the majority of credit card owners is reckless on spending but credit card is not entirely bad if you are using your cash for another things that generate income.

Even huge company ask loans for their businesses if they want to expand since loans/credits offer extra cash by just paying minimal interest rate which they can be paid easily from the business profit in long term.

[o48o]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Well physical money can be easier to grasp and put those numbers into perspective when they are in your hand and aren't just imaginary numbers.

It once worked for me, but i changed it to excel budjet spreadsheet that i made for myself.
It's way more effective as most of the time you don't see all the cash money money you have, nor it would be wise to take them all out in public and count.

Most of the time rest of your money is still just in your pocket and it's, while bank account balance is easy to check discreetly.

And what comes to credit cards, you can just change them to debit cards so you won't go over your budget as easily.

[pinggoki]

If we're talking about how you pay your stuff and depending on how you do it will demonstrate how financially literate you are then the absolute answer in my opinion would be that you know when to use your cash and credit card and you also know how to maximize the use of credit card bonuses without the hassle of being in debt because of using it since you also know how to pay for it in time. The very act of using doesn't demonstrate financial literacy because of the factors that I've said before regarding credit cards might not be existing in your routine.

[Yamane_Keto]

I am one of the people who prefer to pay with cash. The feeling of counting the money manually causes greater psychological damage than a single click. If we say that you want to spend $2,000 on shopping, as soon as you start buying, you will find that this amount is exaggerated and that I must pay less, but when paying through banking applications. Or credit cards It's like I don't spend a lot of money. Therefore, it is not a matter of ignorance or illiteracy more than it leads to more spending.

[Casdinyard]

Credit cards could open new doors for you or close the ones that you already got beforehand. It could be your opportunity for better expansion and an ally for when you need that extra cash, but I find that some people think of credit cards as an extension of their finances, which shouldn't be your logic. For one, you're practically borrowing money from the bank when you take out a loan using your credit card, that's for sure. You also have to keep in mind that you're paying interests on top of the loan capital that you requested.

Some people got a higher credit score and was able to live a full financial life thanks to credit cards, those who did not and failed miserably are 8 feet deep in debt and it's only piling up. Financial literacy has to come before credit cards, not the other way around.

[Lida93]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Can you permit me to talk on this using a gamblers perspective.  For a gambler not to over spend exceeding his bankroll in the way he had planned it he just got to apply self discipline with how he gamble and in same direction a credit card user who lacks self discipline in how to utilize his money have to priotize his needs  not to run into debts.

Using of cash for purchases and using of credit cards has to do with the individual. You will agree with me that there are individuals that are using cash purchase yet still running into debts and borrowings meanwhile some others are using credit cards without borrowing because they are frugal with their spending and desires. That's why I said it all has to do with the individual person.

[crwth]

That depends on the person for sure, if you are someone who doesn't take responsibility too much and tends to spend all the time, credit cards wouldn't be ideal for you. It should be controlled no matter what the process you are doing. It's best that you have the idea or the capacity on what you are paying for.

It's really up to the person if he will be a slave to the credit card or not. For sure, you need to be its master.

[noorman0]

Not necessarily. Let's say someone can last up to 5 years using a credit card, it can be said that they have pretty good financial management. They can proportion income and expenses. Having a credit card is actually not easy, especially reducing the desire to shop excessively. There are many cases where users fail to pay their credit card bills even after several months of use.

In conclusion, assessing financial literacy from credit card use can be done based on how long they have used it.

[boyptc]

If it's just about financial literacy, there are folks that are maximizing the use of credit cards. They're getting more points and benefits or perks from using it.

What they do is they choose credit card providers that have waived their annual fees forever and that's the sign of them knowing how to use it.

But I'd prefer to use cash as well, I don't feel good when I think that I've got debts and that is what I am trying to avoid.

[Zlantann]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

The answer to your question is relative. Some persons will tell you that they spend more when they have cash because it is easier to spend. Others might have different experience. Financial prudence is not a function of cash or credit cards but self-control. You ability to spend on only what you need is more important than the payment channels.

In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Maybe your conclusion about the general advice most financial advisers give to people about being debt-free is based on your observation. And the advice people get from professionals is based on the peculiar experience of the person. There are many other reasons why people are indebted. Credit cards can be very helpful in times of financial emergency, so it is not bad to have one.

[DrBeer]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Cash or credit cards are just tools..... But how they are used is an indicator of human development.
But there are other nuances that not every person can "fight", or rather the temptation to spend more than you can logically afford.
Cash has a "physical limitation" - you can't spend more than you have. A credit card allows you to do that. But here the question is only for the cardholder - why do you spend more than you have?
But cards have many advantages - for example, I don't know how it is in other countries, but in my country, for customers with good credit history and good balance there are for example convenient programs, such as interest-free purchase or 60-day interest-free use of credit funds. It's really convenient. For example, I need to buy a new refrigerator, it costs 1500 dollars. I can pay that amount for it right away. But why, if I can make an installment payment for 12-24 months, with a small amount of monthly payment and 0% interest rate.... But to have those terms, you have to have a good history, and no permanent debt. It's convenient, and it saves me money.... With cash, such a procedure cannot be realized.


Some people use cash because "big brother is watching him" In short, there are a lot of options for using both instruments to achieve different goals

[jrrsparkles]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Avoiding credit cards isn't a smart option, using the credit card wisely should be the actual financial literacy.

It's a broad topic that needs hours of talk to explain it but in simple terms don't use a credit card if you don't have the same amount in your bank account. Let's say you buy products for $100 and then buy them using a credit card even if you have $100 in your hand or bank account.

Credit cards play a vital role in credit history and credit scores which can give you eligibility fo loans at lower interest rates so when you need them for something that can give you returns this all will make sense.

[m2017]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

"Does Using a Credit Card Demonstrate Financial Literacy?" - Just the opposite. This demonstrates financial illiteracy. Credit (borrowed) money is expensive.

When paying with credit or any other electronic money (or analogues), the sense of counting and control is lost, which is expressed in incontinence in spending when shopping, wastefulness and it becomes easier to make unnecessary expenses. Cash, when you see and hold the bills in your hands, these processes become more restrained. Perhaps there are some studies on this matter that could confirm this, but I can only say from my experience that paying with credit (or other) bank cards is more frivolous.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I am sure, and not just think, that this is exactly the case. Absolutely true.

Credit cards (like any other form of borrowed money) can be used, but you need to do it wisely, which most card users don't do, which causes them to go into debt and get into financial trouble.

[terrific]

I don't want to use credit card based on the experience that I've read and horror stories that I've heard. I know that it won't happen to me if they're the irresponsible credit card users.
I understand that there are actually good ways to maximize the usage of it based on the perks that you will get and the bonuses that establishments offers for the CC users that will use for payments.
It's a loan yes but as long as you pay it on the right time, you won't be in trouble.

[ZAINmalik75]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Yes, it is true that those who don't use debit cards are most likely not in debt, specifically from the banks. They have set their earnings and made a monthly or weekly plan to spend their funds. The best way is to live a simple life. Even if you have to use a debit card at some shopping mall or someplace where they don't accept currency directly, try to find another way, and if you still don't find a way around, then use a debit card for such a situation.

No doubt debit cards provide a lot of benefits, they can also save your life in some emergency situations where money is needed, but in normal times, debit cards are just one of the main reasons to increase your expenses.

For example, having an idea of total income and expenditure in mind will make you buy things less. But if you have a debit card, then you might not control your desire to buy new things. We all have the desire to buy things, and when we buy them, our desire increases more, and we tend to buy more. At the end, we are under huge debt that we have to clear, and interest is also there. So, ignore debit cards and prefer to use them in the fewest cases.

[Fortify]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Simply owning a credit card barely shows the tiniest bit of financial literacy as you put it. In the eyes of a credit card company, they really want the dumbest people possible to apply for and start spending on a credit card, because it is one of the most expensive forms of borrowing around for many people. Knowing how the credit card companies are trying to make money from you is critical. Credit card companies don't really make money off people who use it correctly by paying off the balance that is due each month. They make money from the people who roll over debt and make the minimum payments for years on end, while being charged 20%+ per year for the "privilege".

[Cryptomultiplier]

Credit cards ain't easily available to those who don't earn from one form of job or another.
To those it is available to, it is supposed to be used in a disciplined way, but it's never the case with spending, and that's how these credit card schemes make their profits.
A credit card is supposed to be a last resort when cash is unavoidably in absentia.
Using a credit card means one is literate enough to know when and how to cover their debts and can use one, it demonstrates literacy, but when we talk of financial literacy, it's a whole different ball game.

Financial literacy involves the discipline to spend, save, invest, making projections for the future and delay of instant gratification.