ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -While paying in cash will most likely help you save money and make fewer impulse purchases, paying in credit cards does offer an enviable convenience and allow you to afford larger items-given you monitor your spending carefully and make sure to pay off your balance each month.

Detailed explanation-2: -You spend less when you use cash. You’re more likely to stick to your budget and find ways to stretch your dollar-like shopping around and looking for sales.

Detailed explanation-3: -By paying for purchases with cash, you avoid interest charges on those new purchases. Additionally, if you have triggered a penalty APR on your credit card, it may be wise to pay with cash as new charges could accrue nearly 30% in interest charges.

Detailed explanation-4: -Cons: Less Secure. Cash is less secure than a credit card. Unlike credit cards, if you lose physical money or have it stolen, there’s no way to recover your losses.