Comments on: Credit Cards Vs. Cash: Do I Really Spend More With Credit?

By: Dwight Anthony

Dwight Anthony — Fri, 21 Jan 2011 19:50:46 +0000

I really do think credit cards have somewhat of a place in society, but there are many instances where CC usually lead to entrapment as credit cards are usually only as good a credit tool as those that possess them along with their financial education and their personal finance habits.
Good post.

Dwight Anthony

By: credit card help

credit card help — Wed, 28 Apr 2010 08:22:43 +0000

If you know how to use your credit card wisely it’s your advantage as long as you pay the bill before the due date.

By: Craig

Craig — Mon, 12 Apr 2010 20:23:43 +0000

@Austin
Thanks!

By: Austin @ TheOrangePaper.com

Austin @ TheOrangePaper.com — Mon, 12 Apr 2010 16:34:13 +0000

Nice post. Have linked it at my blog here:

http://www.theorangepaper.com/linkfest/weekly-roundup-20100412.html

By: Weekly Roundup [2010-04-12] | The Orange Paper

Weekly Roundup [2010-04-12] | The Orange Paper — Mon, 12 Apr 2010 16:23:06 +0000

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Welcome to the Best of Money Carnival — Mon, 12 Apr 2010 11:22:17 +0000

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By: Kathy

Kathy — Sun, 11 Apr 2010 20:45:29 +0000

@Ryan -- Not sure about the "reputable study" bit, but this is something I found: "A Dunn & Bradstreet study found that people spend 12-18% more when using credit cards than when using cash. And McDonald's found that the average transaction rose from $4.50 to $7.00 when customers used plastic instead of cash. " Perhaps you can use that to find a study. McDonald's may not be a formal study, but just internal type stuff. It looks simple enough -- number crunchers look at total receipts when McD's accepts only cash, then look at total receipts (together, plus divided into cash & credit, in case other factors such as inflation cause a higher total), then look at the differences in the groups -- total receipts when it was cash only; total receipts when it was cash + credit; total receipts of cash only & total receipts of credit only -- then analyze the differences to see if it is a real change or not. .-= Kathy´s last blog ..Paid too much for that whistle =-.

By: Craig

Craig — Sun, 11 Apr 2010 20:27:43 +0000

@Ryan
Thanks for the comment.
As to the formal research I’ve never read on myself. I have done the test on myself – used only cash instead of credit. In my case, I did spend less with cash. Mostly it was times when I didn’t have the cash on hand so I didn’t buy the time. Later, I never went back to buy it.
I guess the only way each person could know is by trying it themeselves.

By: Ryan@TheFinancialStudent

Ryan@TheFinancialStudent — Sun, 11 Apr 2010 19:13:37 +0000

I’ve never understood the “you spend more when you pay with credit” thing. And I have yet to actually see a reputable study. Can someone point me in the right direction?

Even if this study exists, I don’t see how it could possibly be accurate. How do you decide what was really purchased ONLY because you used a credit card. For example, if I’m at the gas station and I see a pack of gum I want, I don’t think “Oh, I have a credit card so I can spend whatever I want.” I think “Oh a pack of gum. I’ll buy that.”. The method of payment never enters into my mind.