Should You Go Cashless With Credit Cards? – What to Know

Mar 12, 2020

Cashless transactions have now spread worldwide as the age of credit took over the world. While cash transactions are still operational, is it a good idea to altogether ditch it completely? Credit made “living beyond our means possible” by incurring debt for a while before paying it at a time of your convenience.

Credit is a good thing if used correctly. Opportunities that were previously not available become possible because you can borrow money from the bank through a loan. But with this opportunity also comes a considerable risk of falling into a bottomless pit of debt. With a scary possibility like that, is pursuing cashless transactions a good option for you? In this article, we’ll uncover the truth and debunk the most common misconceptions surrounding credits.

To Cash or Not to Cash
The most successful businessmen would tell you only to buy something if you can afford to buy it in cash. While religiously following this saying can save you from debt, there are unforeseen situations that force you to cough up a considerable sum that you do not currently possess. Some of these situations include accidents, medical emergencies, or legal fees.

A person’s cash-only mindset changes when he sees the need for money he can’t produce. During these scenarios, credit is the best course of action anyone could do. But, in most cases, use cash first and only use credit when you have no other choice.

Things to Consider
When taking credit is inevitable, here are some of the things you should ask yourself before choosing one. These questions will help you find the best loan provider out there to help you with your financial woes.

Interest Rate
What is the interest rate of the credit? What are the terms and conditions? Are there better options out there with lower interest rates on better terms and conditions? How much will I have to pay if I take into account the interest?

Loan Provider Factors
Is my chosen loan provider a reputable and heavily-regulated debt provider? Is this loan provider an institution of integrity that follows the law, values consumer rights, and cares for its customers? Do they offer better repayment terms, fees, and options than other loan providers?

Fixed VS Variable Solutions
Are you borrowing money as a temporary solution for a big problem? Do you need more time to pay for existing debt and need fast funds to pay your debtors?

Budget Concerns
Can I handle this loan with my current budget? If not, can I compromise my lifestyle to make it possible?

Necessity Concerns
Do I need to borrow money? Can I make the necessary sacrifices to pay for my current problem? Can I borrow money from family and friends without interest?

Credit Rating
Is my credit rating enough for the loan I need? If I can’t pay my debt for some time, can I survive with a lower credit score rating? Do I need another loan in the future?

Explore Other Types of Debt Options
Since credit is not the only option for debt, are the other options good for me? Are they more manageable and flexible for my current financial status?

Are you looking for fast and instant online cash loans in South Africa? Reach out to us to see how we can help.