Why Credit Cards Cost You 167% More Than Cash

Studies have shown that when you use credit cards to make a purchase, you purchase approximately 167% more than if you used cash. Even when using a debit card or check, you will spend approximately 82% more simply because of the ease of purchase.

I'll prove it to you. Next time you go to your local Target, Wal-Mart, Costco, grocery store, etc. bring a specific amount of cash with you for the items that you went to the store to purchase. When you are going to check out, how many additional items (impulse buying) would you have added to your cart? That's right. None.

However, go back the next week or month using your credit, debit card or check book and see how many additional items you come out with.

If you find yourself making a lot of impulse purchases and feel like your spending is out of control, than begin shopping with cash only. This self-policing prevents or minimized the number of impulse purchase you make. You can even use that money to get out of debt quicker.