The use of cash is a very common practice in Mexico. According to the report Research work and recommendations on the conditions of competition in the financial sector and its markets, prepared by the Federal Economic Competition Commission (COFECE) in 2014, about 70% of commercial transactions made in Mexico use cash. This is mainly due to the fact that not all Mexicans have the facility of having credit cards, or do not trust them. However, it is important to note that using credit, debit cards, making interbank transfers and using other means of payment other than the use of cash are often safer and more reliable than paying in cash. Here are the disadvantages of using cash.
Insecurity is the great disadvantage of using cash
First of all, and more in the times we live in, insecurity is the great disadvantage of using cash. We are exposed to a robbery and it is something that cannot be recovered. It is not worth going through a scare because we bring cash.
When a person brings cash, it tends to get attention, mainly from people who intend to steal. You can easily tell if you bring large amounts of money. Apart from that it is uncomfortable to bring it.
The recommendation is to avoid it, and if you must carry it, have it distributed in different parts of the body so that it is not so noticeable.
The money disappears from my hands
How many times have you said this? Cash is quickly spent and often goes into small things without knowing how it happened. Cash does not allow you to keep track of expenses, unless we write in a notebook every weight we spend and, let’s be honest, we don’t.
On the other hand, when using credit or debit cards, or making transfers, we know our financial situation perfectly. In this way we have control and know how much to spend and how to spend it.
The money is falsifiable
Yes, many times we get a fake ticket and lose that money. Nothing and no one can replenish the amount of money from a fake ticket. Waters with this! On the other hand, if you are one of the people who like to buy online because it is easy, convenient and efficient, then you need a credit card. Cash does not allow you to buy online.
And finally, by using cash and not using a credit card, we don’t create a credit history. Credit history is necessary when you want to apply for a loan from the bank or want to enter a mortgage loan or purchase a car. How do they prove that you are a reliable person to pay off debts? It is important to have a clean credit history.
These are the disadvantages of using cash. We recommend that you use credit or debit cards. Apart from helping you create your credit history, it makes your life easier: you can make transfers, control expenses and avoid theft without being able to recover the money.