Are Credit Cards Bad?

Consumer credit question: “Are credit cards bad?”

Well, an article in the Baltimore Sun pointed out that consumers who use credit cards instead of cash spend more.

Specifically, the paper highlighted a recent study of fast-food restaurants, which revealed that customers using credit cards spent 50-100% more than those paying with cash.

While the general idea isn’t a huge surprise, it did make me think about the far-reaching implications of credit card use.

I’ll admit I never thought I’d eat more when paying by credit card, but if the study says it’s true, it must be…so yes, credit cards can contribute to your weight problem.

When you pay with cash, you scrutinize the price of whatever it is you’re interested in buying.

There’s also the off chance you won’t have enough money to make the aforementioned purchase, so that could be a limiting factor as well (in a good way).

When you use a credit card, often times you just ballpark the amount and make the purchase with much less thought; you also don’t have much of a spending limit, assuming you’re not out there charging up thousands of dollars in one sitting.

Conversely, when you actually see the cash leaving your person, it can be a little more profound, to the point where you might hold back.

Along the whole fast-food line, I also got to thinking about nights out, where the drinks seem to pile up.

If you use a credit card instead of cash, there’s probably a good chance you’ll consume a few more beverages, which would not only cost more money, but could come with unintended consequences.

So I will concede that spending (and bad decisions) may go up with credit card use, which could lead to weight gain or worse, financial ruin, but I would hesitate to refer to them as inherently “bad,” assuming you’re a responsible consumer.

Personally, I still appreciate credit cards for their convenience, safety, cash rewards, credit-building capability, flexibility, and nowadays, necessity.

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