Research indicated that credit cards are becoming the preferred method of payment. It also showed an increase in credit card use from last year.
CreditCards.com carried out a survey through which it found out that in the U.S., 16% choose to pay with their credit card for a purchase of less than $10. Credit card owners benefit by paying cashless, as they could get cash back or add points to their name at the shop. The survey showed a 4% increase in credit card users from last year’s results. Industry analyst, Ted Rossman stated, ‘We’ve seen a steady decrease in cash and an increase in credit card use for small purchases since 2014.’
Over 2,500 U.S. residents participated in the research throughout the month of July. Almost half of the participants, 49%, said that paying in cash is preferred for costs less than $10. Additionally, 43% would opt to pay with reward credit cards, with 31% of the latter group saying that paying with a debit card is their immediate choice for small purchases.
Rossman, however, said, ‘Unfortunately, not enough people are paying their bills in full…Sixty percent carry a balance month to month. That’s expensive debt.’ Information released by the Federal Reserve showed that U.S. families have a collective debt of $1.07 trillion from credit cards. Rossman added, ‘The most important thing is to pay the balance in full before interest accrues… If you can do that, then by all means go for the rewards.’