Going cashless may drive you to a consumer credit proposal
The good news is that Canadian consumers have more credit, debit and app options than ever before. The bad news is that going cashless makes it easier to overspend and as a result, before you know it, you could be in serious financial trouble.
A recent online survey by processing payments firm Moneris found that:
- 77% of respondents preferred to pay for purchases by debit or credit card
- 65% said they rarely buy anything with cash
- There is a 162% increase in tap transactions for the third quarter of 2015 compared to the same period in 2014
Easy credit may drive you to a consumer credit proposal
The reality is that we really don’t need to carry cash anymore. Almost everything can be transacted by credit or an app tied into your credit card now. It does seem like we’re moving towards the end of cash; not today, but eventually. Mobile apps like Apple Pay are the future. PayPal, allowing you to charge purchases to your credit card has been available for years.
The problem with all of these modes of payment is that the control of paying with cash is gone. In days gone by the amount of cash on hand dictated how much you could spend. Sure, some stores offered layaway plans but by and large if you had no cash, you couldn’t make a purchase. Even with the lay-away plans, until you paid for the item in full, you didn’t get to bring it home.
According to Jeff Schwartz, executive director of Consolidated Credit Counseling Services of Canada, “Without the physical attribute of taking cash out of your wallet and paying for something, we’re missing one of the senses that allow us that brake on some of the decisions that we make. This disconnect is a concern because with the average Canadian over $20,000 in debt on the unsecured side, it’s a challenge. So we’re already having trouble paying what we owe. Do we really need to make it easier to part with our money?”
Take action now with a consumer credit proposal
If you’re having serious financial problems due to cashless spending, or for any other reason, the Ira Smith Team is here to help. With just one phone call you can be well on your way to living a debt free life Starting Over, Starting Now. Contact us today.