Does Using a Credit Card Demonstrate Financial Literacy?

[Jegileman]

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?

There is no much comparison to make on this two as regards to the title of your topic. Having a credit card does not means financial literacy and not having it does not still mean the same. Financial literacy to me has to do with the proper management skills of your money, either in cash, or online in your bank accounts. If your funds are not save with you by letting out the security of your money for intruders to have access to it, you can be called financial illiterate. Having money to subscribe or not subscribe for any service has nothing to do with your credit cards, even without credit cards, you can always do what you like with your money if you have full access to it at anytime.

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[darkangel11]

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.

I know what you mean. Holding money in your hand makes it feel more significant than making a bank transfer or touching a reader with your card.
I've never had a credit card same as most people that I know.Unlike in the US, in Europe debit cards are more popular than credit cards. Holding cash at home is a tradition for me. I've never fully trusted banks and always tried to have some money at home, especially since the ATM bank runs happened and I've learned how hard can it be to access your money when too many people want to do the same thing.
Currently, I own more cash and bitcoin than money in the bank. I don't have a loan, or a credit card and I'm happy. Don't know if that makes me literate or illiterate in financial terms. You will have to decide that on your own

[serjent05]

What are your thoughts on this stance?

I think this case is subjective.  It depends on how a person manages his finances.  After all financial literacy is all about financial management.  There are people who don't have credit card but still unable to control their spending while there are people who have credit cards but are able to control their finances successfully.  Having a credit card in not an indicator whether a person has financial literacy or not.  It is the way they use their finances and how they manage them carefully.

[Bananington]

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?

With cash, you can always plan better and organize your expenses. You will always be quick to make subtractions from the cash you have at hand whenever you have an expense unlike when you use a credit card that you just know that your account is funded and you are able to afford many things, it's easy to lose count or track of what you spend because you're not carrying physical cash with you. Some persons properly avoid having credit cards just so that they can be more financially disciplined and save more.

[Fatunad]

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?

Having credit cards isnt bad as long you are really just that responsible about on how you do spend and also it do really outweighs the risks or its cons via its benefits.It is really just turns out that people would really be focusing that much about its negative.There would really be that no negative if you are really just that responsible on paying up your dues and not really just that going overdue or wont mind on repaying it out.
Also come in mind that we could really be taking advantage on having CC considering that you could really be able to make some fast cash if  you are in need which it is way more better rather than on getting some loan into some people which interest is really that high and never been worth but if someone who do sees that CC's are really that huge problems then it isnt really that bad that they would get rid of it specially
if they have seen or having those bad experiences in the past then it would really be ideal that they should gonna do on whats right.

For me then i would be seeing that CC are really that a great help since not all the time we do have fiat into our pockets on which there would really be moments or times that you would
really be needing it up and it is really that a life saver but of course you should really be a responsible payor for you not to have those kind of problems.

[pixie85]

IMO it's the opposite. Many people in the US with primary education own and use a credit card. At the same time many well educated people use cash on purpose to show defiance.

Politicians want us to use digital centralized money and limit cash payments, so it's important to keep using cash as much as we can and show sellers that a lot of their income comes in this form.

I primarily use cash and don't even own a credit card.

[poodle63]

In my opinion the owning of credit card tend to cause overly excessive consumerism, with credit card it allows you to think for later which means saving up problem for later which might cause financial instability.
although we know owning credit card definitely requires certain qualification but I still think that it really don't contribute much to our lives unless we could use it for productive purposes like making business where we can hold off payment until end of the month then only at that scenario it will be useful.
I personally would never use credit card because it might make me more consumtive than just using cash, at least with cash i have sense of guilty by wasting money, with credit card, sometime you just don't feel it and suddenly at the end of the month, the bill pop up.

[Silberman]

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?

There have been studies about this, and when you have the cash in your hand it becomes way more difficult to spend it compared to other forms of money that are not physical, like it is the case of a credit card or the money on your bank account, so getting rid of your credit cards and using cash exclusively can indeed help you to become more responsible with your money, however this should be part of a whole financial strategy or the positive effects you may see will be very limited.

[DabsPoorVersion]

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?

With cash, you can always plan better and organize your expenses. You will always be quick to make subtractions from the cash you have at hand whenever you have an expense unlike when you use a credit card that you just know that your account is funded and you are able to afford many things, it's easy to lose count or track of what you spend because you're not carrying physical cash with you. Some persons properly avoid having credit cards just so that they can be more financially disciplined and save more.

Being responsible will make you not lose track of your credit card expenses. It is indeed easy for most people to track their expenses when using cash, however, responsibly using credit cards is the same. Credit cards have benefits/promos you can enjoy, let's say using it the correct way or the correct credit card category may even give you a discount/cashback. Credit cards also have the option of paying it in full (without interest), or installment (if you worry about overspending). There are a lot more benefits to using credit cards.

You see, it's all about being responsible for using credit cards and knowing how you can maximize all its benefits. Some people are using credit cards on their business, meaning, running their businesses without even spending their own money.

[lovesmayfamilis]

Why is it convenient to use a credit card? To avoid debt on obligations, The time comes for you to pay for something, but you don’t have the required amount on hand; a credit card will come in handy. But to live uncontrollably in debt is a very rash act. It's like slavery. In addition, paying by card is always psychologically easier than paying in cash. When spending cash, a person is also subject to psychological pressure about whether this or that thing is necessary at the moment and at a given price; that is, whether there is a conscious understanding of the need for the product being purchased. Therefore, I would also agree that those who spend cash are more careful about their use and are more savvy in matters of finance.

[slapper]

Do we really think that giving up credit cards will solve all of our financial problems? This viewpoint ignores the nuances of financial literacy in favor of a reductionist approach. In this discussion, credit cards' benefits (rewards and credit history) are ignored

To some extent, the belief that using cash means living a debt-free life is true, but it's important to examine this claim more closely. It's not that credit cards are the nemesis of stable finances; rather, using them carelessly poses a risk. Financial knowledge isn't either/or; it's a complex field where smarts and discipline live together. We need to look into these simple ideas more deeply and rethink our position on credit vs. cash

[Negotiation]

I prefer to use cash over credit cards cards are online shopping and credit cards are a special facility offered by banks or financial institutions. This card can be used to borrow money for purchases or other services credit card loans have to be repaid within a certain period of time. Every month interest is charged if the money is returned within the specified time period. If there is delay in payment of interest due to any reason the amount of loan increases but in case of using cash money there is no problem of such interest. Not every thing can be bought with a credit card sometimes cash is needed for small items.

[Don Pedro Dinero]

There is a concept that companies and governments are very familiar with, and that is friction. When you pay with cash, you feel the maximum degree of friction, one degree below is paying with a debit card, one degree below is paying with a credit card. The less friction you have, the more you tend to spend, that's why it is so important now that we go to a cashless society, because they want us to be broke consumers. It's inevitable to use cards from time to time and I do but if you want to get your finances in order and pay for everything digitally, you'd do well to go back to cash.

[Nwada001]

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 don't have experience with credit cards and their features, so I can't relay how those debts work. In my country, what we make use of is a debit card, and it makes life easier than operating with cash wherever we go.
 
I have read about the feature that the credit card has that allows people to take a loan from their card, which they can pay back after a letter when they have the money. Those are good features, but most people seem to miss using them in the wrong way, as it always makes them spend more than they have.
 
But it's up to the individual who makes such a decision that people can still have access to the credit card and don't run into debt or start thinking about how to escape debt. It's all based on personal decisions. Even without a credit card, those who are not good spenders can still borrow to fund their lifestyles that they can't afford.

[Yogee]

I used to have a no credit card policy but I'm now reconsidering.

It's funny how not using a credit card is called dumb by some people running a business. They claim that if you are going to spend money on your necessities and business expenses anyway then you may as well get one so you could build your credit up and gain some perks. Treat it as if you are using a debit card. This is the part where I find it most logical and a smart move.

[philipma1957]

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?

If you use your credit card properly they will make money for you.

I am 66 years old and have paid under 100 usd in credit card interest since 1985.  I have earned 50,000 usd in points. Used for trips mining gear gift card etc.

So basically CC's are a source of income for me. 

If you can't do this don't .
if you can do this and don't do it you are not using your good credit properly.

It is pretty much this simple.

[kryptqnick]

People usually use debit cards, not credit cards in my country, so when a person's paying with a card, it's usually this person's money on it. I've never used a credit card, but there were times when I used cash more vs times when I used card payments more. I think that if one needs to stick to a rough budget, it's easier to use cash because you just take a certain amount with you and that's it, but in other situations, it doesn't really matter. Also, it's more of a matter of financial management rather than financial literacy to me because literacy is about more than sticking to a budget.

[Juse14]

A credit card will only be useful and helpful when the card is used by the right and wise person. Of course, the presence of this credit card makes it very easy for us to carry out transactions because with a credit card we don't need to bother carrying cash when shopping in large amounts and the presence of a credit card can also help us in times of urgency, helping us to meet our needs. when we don't have enough money to meet these needs. because with a credit card we can make a loan without collateral. However, this can be inversely proportional when this credit card goes to the wrong person and is careless in doing something. The presence of this credit card could have bad consequences because it could allow someone to behave carelessly, namely shopping without any restrictions and doing this just to fulfill their desires, so that in the end this will only make someone become in debt.

[AmoreJaz]

A credit card will only be useful and helpful when the card is used by the right and wise person. Of course, the presence of this credit card makes it very easy for us to carry out transactions because with a credit card we don't need to bother carrying cash when shopping in large amounts and the presence of a credit card can also help us in times of urgency, helping us to meet our needs. when we don't have enough money to meet these needs. because with a credit card we can make a loan without collateral. However, this can be inversely proportional when this credit card goes to the wrong person and is careless in doing something. The presence of this credit card could have bad consequences because it could allow someone to behave carelessly, namely shopping without any restrictions and doing this just to fulfill their desires, so that in the end this will only make someone become in debt.

bottomline, you can only appreciate having your own credit card if you are responsible enough in managing it. but a nightmare if you happen not to control your spending habits.
for me, it is better not to use credit card at all, at least, there's no temptation. most of what we buy usually is the product of our impulses.

[dothebeats]

I don't think that that's not the case. Credit cards offer convenience to a lot of people, and provide better flexibility especially in buying online. Using cash exclusively also does not mean one is financially literate. It may just meant that they don't have access to credit cards, too. Financial literacy is knowing how and when to spend money. Using whichever financial instrument does not make you more financially literate - it all boils down to your financial decisions e.g. buying wants vs needs, etc.