Should you use cash, debit, or credit?

Most of us have multiple ways to pay our bills or buy goods and services.

Credit allows us to use borrowed money with the promise of paying it back within a month's time. Debit pulls electronic money straight from our checking accounts. Cash is paper and coins used to pay for transactions in a direct way.

Which payment option should you use? It all depends on your situation and your psychology.

Below are listed situations and the smartest method of payment:

1. You have credit card debt: Use cash or debit
2. You're spending enough that you want it insured: Use credit
3. You're making a small purchase from an independent business: Use cash or debit
4. You're making a purchase from an online or major retailer: Use debit or credit
5. You like the security of knowing you could get your money back if it's lost or stolen: Use credit
6. You want a record of your purchases: Use debit or credit
7. You're not great with paying bills on time: Use cash or debit

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