Credit, Debit, Cash or… Bitcoin? Which Payment Method is Best for You?

Credit, Debit, Cash or... Bitcoin? Which Payment Method is Best For You?
So Bitcoin…

I’ll say right off the bat, Cryptocurrencies like Bitcoin are unbelievably volatile and unreliable in terms of value at this time. Thus, considering them as a viable paying option is unwise. Also, the mere fact that different types of Cryptocurrencies can just be created is rather frightening. Although many flaunt that there is a “limited supply of Bitcoin”, there is not a limited supply of Cryptocurrencies…

I know many big names out there have shown that they paid or received payment using a Cryptocurrency like Bitcoin. But the truth is, many just turn it right back into dollars because its value is a gamble every day. There is far too much risk in it. Not to mention they are not recognized by the masses as a viable payment option. So unfortunately, I give a thumbs down.

Nonetheless, I find it interesting to hear all the different ways people like to pay for things.



Some prefer credit for the rewards, others prefer debit so they can avoid debt, or some prefer cash so that they can ‘feel it.’ 

While everyone has their preference, everyone also has their weakness and their reasons. Some people simply can’t handle Credit Cards because they always spend too much. Or others can’t seem to keep cash for more than a week without spending it.

The best option?

These are all separate preferences that simply come down to self-discipline…which is always easier said than done. If you struggle with overspending, read my previous article on this here. If you have your preference that is OK! By all means stick with it.

Overall, it’s good to use/have all 3. However, if you can handle yourself, Credit Cards might provide you with the greatest benefit in the long run… but there’s a catch.

As soon as you carry an unpaid balance and let interest accrue, you’re cash back or points benefit has been lost. And it costs you. 🙁

With that said, you need to dominate your Credit Cards and make them work for you! If you want a great book that supports this idea and teaches you how to dominate read: How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.

Paying with your Credit Card benefits you in multiple ways – cash back or points, building credit, budgeting, and theft. But the key is to be disciplined.

If you cannot appropriately manage Credit Cards or do not trust yourself, then by all means stay away.

However, if you’re considering the benefits, here are my 4 tips for winning with Credit.

1) Don’t get a Credit Card with an annual fee (unless the benefits outweigh the cost)

When you get a rewards card, get one that is free to have unless you know the rewards will outweigh the cost. You should never pay to spend money you know you have. The draw for annual fee cards is the extra benefits and membership type perks. However, I’d prefer not to be incentivized to spend more than what is necessary. Snag the benefits on free rewards cards and spend as you normally would. This way you’re getting rewards and building credit.

2) Treat your Credit Card like a Debit Card – only spend what you can afford

This is incredibly important. So many people view their Credit Card as an extension of money they have. DON’T THINK THAT. It is still debt and you are still borrowing money. When you follow step #3, you are actually making money to spend as you normally would. But the key here is to spend as you normally would. Treat your Credit Card like a Debit Card, only spend what you need to and what you can afford.

3) Pay your balance in full and pay on time

Or, as I’ve mentioned before in my post on getting better credit, pay your balance off before your statement rolls over. Overall, it is critical to be on top of all of your spending and be sure you are diligent in managing your money/credit.



4) Utilize the card app to help manage your account

Lastly, get the application for the card company you have and always monitor it. Capital One has an app that makes it easy to stay on top of your card details (transactions, rewards, credit score, etc.). You always want to be aware of what is going on with your money.  Most apps allow you to set alerts on your account to inform you of what transactions are being posted.

Credit Cards provide an added layer of protection when compared to your Debit Card. Debit is a direct link to your bank account and your money. Using a Credit Card is using someone else’s money. Thus, if someone gets their hand on your card info, with a Credit Card it won’t be a direct hit and the card company will fight to protect their money and your account. You can report/dispute anything that’s not you, while they too will report to you any spending that might appear suspicious.

For more great info on Credit Cards, check out Credit Karma.

Overall, use whatever method of payment you think is best for you and with which you are most comfortable. I do not like to advocate using debt, but if you play your cards right and act wisely and diligently, you can receive rewards that you would otherwise not receive.

To get better with credit cards read How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line
If you need to get out of severe debt that read The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness

Like I said before, you need to be diligent and disciplined in managing Credit Cards. Note again for yourself the tips above and don’t let your card cost you.

P.S. Maybe one day you can use your Cryptocurrency as payment, but as of now, it’s a risk.

Cheers & God Bless!

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DISCLAIMER: The opinions, analysis and statements presented in this article and on this site are solely my opinion (based on my own research), not affiliated with any past, present or future employment or business affiliation. This post contains affiliate links of the products that I recommend, which means if you purchase products through the link, I’ll receive a small commission. This helps support the blog and the time and effort put into it. Thank you for the support!!

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