Lifehacks

Less debt

A study looked at 14,000 consumers who kept a balance on their credit cards. In order to see if it could help people spend less. They gave the consumers two rules:

1. “Don’t swipe the small stuff. Use cash when it’s under $20.”
2. “Credit keeps charging. It adds approximately 20 percent to the total.”

The results showed that when people were reminded to pay with cash they had less debt on their credit cards six months later.[1]

Pay less

People are willing to spend twice as much for the same item when they use a credit card rather than cash.[2]

Value what you buy more

Research finds that we value the items we pay for with cash more than when we pay with credit card.[3]

Footnotes

[1] Paying With Cash Really Does Make You Spend Less

[2] Do Payment Mechanisms Change the Way Consumers Perceive Products? | Journal of Consumer Research | Oxford Academic

[3] Why We Value Purchases More When We Pay With Cash