Credit cards are bad for health.

When I first came to know the idea behind a credit card a few years ago, I was really fascinated by the concept. You buy anything you want right now without paying for it right now by using this plastic card.

It almost felt like we could buy things for free using a credit card. My father had multiple cards, so I once asked him if we can pay bill of one card using another card then when the bill of this card is due we use the first card to pay it’s bill. Thereby creating a cycle where we never have to pay anything. He started laughing to my question and said no it can’t happen this way.

One thing that my father always told me is to always prefer using cash instead of card. I never really understood the logic behind this. Cards are obviously more fancy and less cumbersome to use.

Now, finally I know the reason why he told me to not use the card over cash. I found my answer in psychology. A psychological study revealed that we overspend when we use card instead of cash. This is because, it gives us a feeling that the product is free, as we don’t have to pay for it now. We don’t feel the pain of parting with our money while using cards. On the other hand paying in cash makes us feel the pain of parting with money, because for cash we have to count notes and give it to the seller after which our wallet feels lighter, which is not the case in cards- the weight of wallet before and after payment remains the same. Hence, psychologically making us feel that we didn’t pay anything.

Also, cards are more convenient, no counting for change and getting toffee instead of change problems. Here again like other things we prefer convenience but as a result end up spending more than usual.

The prospect of paying at the month end is itself encouraging you to spend more, you feel of by then I would get my salary. No big deal, I’ll pay for all this then.

If all this logic doesn’t deter you from using credit cards. Then at least agree to the “Say no to Plastics” policy, trust me it will do you and your financial health a world of good.

The best financial advice you’ll ever receive is to use cash instead of card whenever possible. The question is will you prefer inconvenience to save money?

-ChoubeySahab