Do you splash your cash or pay with plastic?

I generally use cards to pay for purchases over £10. I prefer to pay by credit card but will switch to debit card if there is a surcharge. With small businesses ask how they would prefer to be paid, aware of the cost of processing a credit card transaction. The reason I like credit cards is that I can be sure that I have sufficient money in my bank account to pay the bill, which is done by monthly direct debit.

I use several companies that don’t have card facilities and prefer cheques or cash. Most are small businesses, but one is a city centre branch of a national copying and printing company. They are always happy to send out an invoice, so anyone who turns up without cash or cheques will not be disappointed. Very quaint but very helpful too.

I love your anecdote about the guy who keeps his card in the freezer, Catherine.

It depends on the cost of the purchase and how much I have in my purse.
Generally I pay for low value purchases by cash and purchases over £20 or so by debit card. I often get cash back when I pay by debit card to save me going to the bank. I use credit cards for higher value items and for flights and holidays. I get an extra years warranty on TV’s and kitchen appliances, etc. when I pay for them using my Nationwide credit card.

I pay with one credit card for anything I can and pay in full every month. It helps my householding accounting to keep track of spending, avoids carrying too much cash and, as a bonus, gives a minor reward in vouchers. The danger of any card is impulse buying those lovely things you don’t really need or can’t really afford – somehow that was less tempting when you had to extract cash from a wallet (John Ward – you won’t get far with a 10/- note these days but they were worth having in their day).
Your survey may be a little oversimplified? On this albeit small poll so far 82% prefer to pay by card, whereas 50% of transactions are in cash? Presumably most of those transactions are for small amounts that you (and I) wouldn’t use a card for? However now selfpay tills are increasingly common even a very low cost item can be paid for by card – I bought a £1 item this way at B&Q. I would never have done this at a real till.

I always pay by credit card in order to receive points, airmiles or cashback. I use American Express whenever possible because they charge retailers more and they therefore give me more back in rewards than Visa or MasterCard cards. If a retailer doesn’t accept American Express (often because of its higher charges to retailers), then I use Visa or MasterCard instead.

If I pay with a 1% cashback credit card, then I pay only 99% of the transaction amount. If I receive points or airmiles instead, the value of those points or airmiles is often more than 1%.

My points, airmiles and cashback are subsidised by those who pay by debit card. I don’t understand why people pay by debit card as it costs them 100% of the transaction amount instead of paying 99% with a 1% cashback credit card.

It is important to use credit cards solely as a means of payment and never as a means of borrowing. This means that balances should always be paid in full.

I use two credit cards. One from the 1st of the month to the 17th, the other from the 18th to the end of the month. Payment dates for each are set to maximise the interest-free credit period. They’re both cashback cards, too. Yes, yes, I’m mean and stingy when it comes to banking, but it’s a small step towards tipping the scales back in MY favour.

Plastic cards and how you pay have nothing to do with budgeting (or impulse buying). Common sense with just a little will power is what matters.

I do 99.99% of my shopping online so always use my cashback credit card, then make sure its paid off in full at the end of the month!

If the bill in a shop is less than £20 I always pay by cash. Over £20 I normally pay by debit card for normal household expenses or credit card for non-household purchases.

If I am spending over £100 I use my credit card so that I get section 75 protection.

On-line I always use a credit card.