Food for Thought for all those shopping with a Credit and/or Debit Cards
"It turns out that multiple behavioral economics studies back up these assertions. One of the most often cited studies is one conducted by Dun & Bradstreet, where the company found that people spend 12-18% more when using credit cards instead of cash. McDonald’s reports its average ticket is $7 when people use credit cards versus $4.50 for cash"
https://www.nytimes.com/2016/03/27/your ... .html?_r=0
"Credit Cards Encourage Extra Spending as the Cash Habit Fades Away"
https://www.nytimes.com/2014/10/11/your ... nding.html
"One of the most well-known studies, published in 2001 and titled “Always Leave Home Without It,” showed that in certain contexts, people were willing to pay up to twice as much for the same item when paying with a credit card instead of cash. This is known as the “credit card premium.” "
Behavior with debit cards is identical to CC. I also read that even though it is too new to have studies/data on it, Apple Pay seems to be leading to the same behavior as CC/DC.
But the point I wanted to draw attention to is that I see a huge preoccupation with rewards/cash back and it is easy to lose sight of the fact that any overspending negates all benefits. What's the point of getting 2% back if using a CC/DC/Apple Pay makes you, on average, spend 10% more???
Of course, this doesn't apply to you
P.S. For the record, I have three CC, but I also use cash.