Cash, Loans, Debts, and Promises

Cash, Loans, Debit, Promises: Lesson 2

Cash, Charge, Plastic, or Payments

  • Some people operate on a strictly cash basis: get some money, pay for things with cash, when it’s gone it’s gone. Go to work and earn more.
    • There’s nothing wrong with spending only what you have!
    • But life can be more complicated than just buying what you need for right now.
  • Cash is risky: in general, if you lose cash, it is just plain lost.
    • If you lose a little cash, it might not be a big heartbreak, unless it’s all you had!
    • If you lose a lot of cash, it can be a huge problem you can’t fix. It is gone.
    • Losing a lot of cash might mean losing your housing, your transportation, your food.
  • Credit cards can give you the power to argue about a transaction and not lose your cash. They can limit the amount you must pay back if you lose a card and someone else uses it without your permission. But you can easily spend more than you can afford.
  • You can buy something on payments … but only if you have a VERY reliable income.
  • A safer option for managing your money: put it in a bank. Read on.
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