The study found that “the size of spending and the moral worth of purchases are unclear to credit card users, unlike those who pay in cash.”
On the other hand, researchers in the field of psychology at the Massachusetts Institute of Technology found that “people tend to spend more when using credit cards, compared to those who pay cash.”
According to Forbes, “interest rates rise for consumers who cannot pay their credit card balances on time.”
The research warned against falling into the trap of points or rewards they reap from credit card purchases, such as earning free tickets or reservations at luxury hotels.
The researchers explained that “focusing on investing in assets and other sectors is more beneficial than relying on credit card points.”
In this regard, Mahasin Mursal, a journalist specializing in economic affairs, told Sky News Arabia: “There is a difference between paying in cash and paying with plastic money (cards), because psychology says that paying Cash is painful even for those who have wealth, because the person feels that his money is eroding.
And she added: “On the other hand, when the payment is made by bank cards, psychology says that the human sensors on the risk of these operations and their impact on the monthly budget or the finances of a person are disturbed.”
She pointed out that the use of credit cards is “a major reason for debt and interest piling up on people, in exchange for things they bought, which most don’t need”.
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