3 ms·

Buying anything on a credit card (accepted almost everywhere) encourages many people spend more than they originally intended/budgeted for. http://seekingalpha

Buying anything on a credit card (accepted almost everywhere) encourages many people spend more than they originally intended/budgeted for. http://seekingalpha.com/article/20333-guide-to-credit-cards-how-credit-cards-encourage-you-to-overspend http://seekingalpha.com/article/20333-guide-to-credit-cards-... "A Dunn & Bradstreet study found that people spend 12-18% more when using credit cards than when using cash." Most people you know might be an extreme minority when it comes to the range of financial habits targeted by credit card companies.

rahimnathwani 13y ago
The study compared credit cards and cash. I suspect the difference is related more to the _card_ aspect than to the _credit_ aspect, as the former takes away the 'did I bring enough cash with me' issue. "McDonald's found that the average transaction rose from $4.50 to $7.00 when customers used plastic instead of cash." I have a certain amount of money in my pocket. If the bill is higher than that amount, I will definitely pay by card. If it's lower, than I'll choose card or cash. So, even if the card/cash choice had no impact on my spending patterns, you would expect my cash transactions to have a lower average value.