Switching Over To A Cash-Free World

Since the start of the COVID-19 pandemic contactless payments have become the best way to buy goods without making any more physical contact than necessary. While this isn’t a big departure for many of us some are left trying to acclimate in a cash-free world.

If you’ve bought anything in person since March you’ve probably noticed that retailers are urging customers to pay with card, not cash. This has a cause that is two-fold. The first is that card payments require less physical contact with the cashier and better comply with social distancing. The second and possibly most serious is a severe coin shortage throughout the country. The shutdown of businesses, including the US Mint, meant that coins were not circulating like they had been resulting in a severe shortage that has left many businesses rounding up prices, only accepting small bills or only accepting card payments. This has made card payments much more desired.

For a lot of us paying with a card is no big deal but many, especially those with credit card problems, cash is the best way to avoid racking up debt on cards. What can you do now to adjust without destroying the progress you have made?

Use Debit

It is tempting to make a payment with a credit card knowing you can pay it off later. But that one action can lead to a true slippery slope. Once you get comfortable charging things it can become a habit and can quickly get out of control. If you’ve ever dug yourself out of credit card debt you know this all too well.

Your best bet for making card payments is to always use debit. In this instance debit works in the place of cash and doesn’t cause debt to pile up. You will certainly still need to use your credit card every now and again but do so sparingly.

Get A Pre-Paid Debit Card

If you are someone who only uses cash because you’ve gotten out of debt or you are trying not to worsen existing debt it may be worth it to get a pre-paid debit card if you do not have one attached to your checking account or want to be able to better limit your spending.

These cards can be loaded with money online, over the phone or at some ATMs. They essentially work the same way a normal debit card would. The only caveat is to make sure the card you choose is a good one. You can find a great breakdown of the best pre-paid debit cards over on NerdWallet.

Use Exact Change

While cash isn’t preferred it certainly is still okay to use! If you are going to use cash your best bet for a while is to try and use exact change. Many businesses won’t be able to break large bills or give you coins. If you can pay with exact change that eliminates that complication for both you and the business owner. Plus the business owner would appreciate having a little more change on hand!

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