We all think earning money is hard, right? But you will be surprised to know that spending money isn’t that easy either. We have long left behind the era where cash was king and there wasn’t any concept of credit/debit cards. But today, we have so many ways of purchasing commodities that our wallets no longer feel weighed down by fat stacks of cash.

But there is a flip side to this too – while there are multiple ways of spending money these days, we often get confused while picking one option over the other. Is debit card more financially viable than credit? Should we prefer cash payments for everyday purchases? The answer is not very simple so let’s go into some details.

When should you use credit cards?

Credit cards are a very convenient and easy mode of payment for many working professionals. However, it is important to make regular bill payments along with interest to avoid a debt pile. Here’s when you should use credit cards:


Credit cards are ideal for those who are traveling as it avoids the hassle of carrying cash. Plus, you can also gain added benefits such as air miles, discounted stays and car rentals.


Compared to cash and debit, credit cards offer the best security option as you are not liable to pay fraudulent charges in case the card is lost or stolen. It’s easy to block a credit card, plus you don’t have to worry about carrying money with you.


Credit cards offer the best rewards on certain purchases in the form of discounts, cashback and loyalty points. You can actually save a decent amount of money by making purchases with your credit cards instead of cash or debit.  

Work expenses

 If you are traveling for work, you will obviously be making a lot of expenses that will be incurred by the company. Using your cash or debit cards would mean that you will have to spend the money you have on you. To save that, you can simply use credit cards and submit an expense report to the company, which will then take care of the reimbursement. 

When should you use cash?

With almost every place easily accepting debit and credit cards, most of us have stopped carrying cash altogether. In fact, most surveys suggest that people usually carry cash only for emergencies and small purchases. Here’s when you should use cash:

During emergencies

Since cash is accepted everywhere, no matter what, it is important to carry some at all times in case of an emergency. Apart from carrying cash in your wallets, you should always make sure to store some in places like the glove compartment so that it can come in handy if you run into trouble.

When you want to save

Almost every study says that people tend to spend more money when they use credit/debit cards instead of hard cash. The reason behind this is simple, we make an association that your money is being spent when cash leaves your hand or wallet. It’s hard to make these associations if you are using credit cards. In short, it is advisable to use cash if you are on a budget as it will automatically keep your spending habits in control. 

 Small purchases

Certain stores have a lower limit on the purchases you can make with a credit card. This is where cash can come in handy. Plus, most small businesses still prefer traditional mode of payment, i.e. cash, instead of using credit or debit cards. 

When should you use debit cards?

Debit cards are slowly replacing cash as the most ubiquitous mode of payment. They offer the convenience of a debit card and the limitations of cash spending since the money is deducted from the account at the time of purchase. Here’s when you should use debit cards

To avoid debt

Since the debit card is directly linked with your bank account, you can only spend the amount of money you have. This ensures that you never go in red and spend only what you have. 


Making everyday purchases such as dairy, groceries, gas, etc are always more convenient with debit cards. 

When you are lousy at paying bills

Paying bills on time is not everyone’s cup of tea. If you think that you will not be able to take care of your credit card bills on time, it’s best to stick to debit cards. 

When you want to save and avoid cash dealings

Debit cards are a great way to manage your spending without the hassle of carrying loose cash in your wallets. If you prefer keeping your pockets light, you should use debit cards for most of your daily/weekly purchases.

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