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URL:  http://boards.fool.com/credit-card-users-buy-quicker-and-pay-more-17739310.aspx

Subject:  Credit Card Users Buy Quicker, And Pay More Date:  8/26/2002  10:36 AM
Author:  jammerh Number:  137665 of 308229

I read a report the other day that indicated people will actually buy quicker, and pay more when they use a credit card.

Now, I've always thought of myself as one cheap SOB who wouldn't be influenced by the ease of paying with plastic, however, I have to wonder at my own habits in light of this study.

People are more hesitant to buy, when they're paying with cash. But the reason isn't exactly clear. Could be that the cash seems more like real money. Could be that the inconvenience of having limited amounts of cash, makes us more hesitant to spend. Knowing that you'll have to run to fetch more cash when the amount you have runs out can be an additional deterent.

It does make me wonder. I've always used a credit card for the convenience it offers. I justify this practice by telling myself that I'm not only getting the flexibility of putting everything on one bill, thus reducing the amount of cash I need to carry, but also get one easy statement at the end of the month outlining my purchases and keeping me informed of spending habits.

Could it be I'm spending more because of the lack of having to deal with cash? I know on rare occasions when I forget to bring my wallet, and have to go without, that the mild inconvenience of going without for a day or two often does save me money even as it enforces a temporary abstinence from some of my prefered foods.

Somehow I manage to survive.

Could be we all might benefit financially from applying a pair of scissors to our plastic.


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