Laziness and Inflation - student pays off loan with cash

[highnote]

http://finance.yahoo.com/news/heres-happened-tried-pay-114-155500789.html

This story is raises some interesting issues.

1.) It shows how bad inflation has gotten. Paper money has become so worthless that people are too lazy to count it because it takes too much work.

2.) Banks don't want to part with "their" money. It's not really their money but they act like it is.

3.) Good luck trying to withdraw your money if there is a run on a bank.

This got me to thinking... how hard would it be to go six months without using a credit card and paying everything in cash? I am sure I would spend a lot less.

[Bettowin]

Pay for everythign with cash and include $2 bills and Sakagawea dollar coins:)

[Robert Goren]

It happen in Canada.

[Bettowin]

It happen in Canada.

Yes. It's in the article.

[boxcar]

Something doesn't ring true here -- the part about the creditor having to count the cash by hand. Banks have machines that do that very quickly and accurately.

Boxcar

[lsbets]

This got me to thinking... how hard would it be to go six months without using a credit card and paying everything in cash? I am sure I would spend a lot less.

After running my own business and realizing how people get gauged with swipe fees (swipe fees get priced into products, so the consumer is paying them), my wife and I decided to pay everything in cash that we could. I use the debit card at the gas station because I'm usually too lazy to walk inside and stand in line. When an online bill gives me the option of paying by ACH instead of debit card, I'll do it that way. I tend to carry a fair amount of cash on me, and always pay in cash for any shopping or restaurant trips. If it wasn't for the gas station, I would be all cash for brick and mortar transactions.

I don't see much point in keeping anything substantial in the bank right now with interest rates where they are (and I'm not a fan of the banks so I don't want them to hold my money), so I withdraw my extra cash and keep it at home. Besides, if I need a lot of money outside of business hours I like not being constrained by daily spending limits and ATM withdrawal limits. If you bank in a smaller town, a ten thousand dollar withdrawal can be a large percentage of the cash they have on hand, so they do try to discourage it. Its pretty funny when you go to the bank to get your money and they say "Let me see if we have that much on hand." "Do you need it all today?" "Can we give you half in cash and half in a cashier's check?" I've had all three of those responses.

[lsbets]

This got me to thinking... how hard would it be to go six months without using a credit card and paying everything in cash? I am sure I would spend a lot less.


One other thing:

If you go to locally owned business, you can still get a discount when paying cash. A couple of weeks ago I bought a new fridge and oven. I got them to take $100 off by paying cash. The total was a little over $3700 and like 28 cents. He laughed when I went to the car to grab the change and I paid him exact change. Said they see that maybe once a year.

[Bettowin]

After running my own business and realizing how people get gauged with swipe fees (swipe fees get priced into products, so the consumer is paying them), my wife and I decided to pay everything in cash that we could. I use the debit card at the gas station because I'm usually too lazy to walk inside and stand in line. When an online bill gives me the option of paying by ACH instead of debit card, I'll do it that way. I tend to carry a fair amount of cash on me, and always pay in cash for any shopping or restaurant trips. If it wasn't for the gas station, I would be all cash for brick and mortar transactions.

I don't see much point in keeping anything substantial in the bank right now with interest rates where they are (and I'm not a fan of the banks so I don't want them to hold my money), so I withdraw my extra cash and keep it at home. Besides, if I need a lot of money outside of business hours I like not being constrained by daily spending limits and ATM withdrawal limits. If you bank in a smaller town, a ten thousand dollar withdrawal can be a large percentage of the cash they have on hand, so they do try to discourage it. Its pretty funny when you go to the bank to get your money and they say "Let me see if we have that much on hand." "Do you need it all today?" "Can we give you half in cash and half in a cashier's check?" I've had all three of those responses.

I assume you have a safe and a gun or ten in your house?

[boxcar]

I assume you have a safe and a gun or ten in your house?

LS made a mistake by posting too much info. We ARE living in the age of Big Brother, so I'm not sure how either a gun or safe would protect him from his brother.

Boxcar

[Bettowin]

LS made a mistake by posting too much info. We ARE living in the age of Big Brother, so I'm not sure how either a gun or safe would protect him from his brother.

Boxcar

He doesn't keep money in a bank and pays with cash. Nothing wrong with that. Why would Big Brother care? I was thinking about if word got out that there might be a large amount of cash to be had some low lifes would make a run at it.

[Robert Goren]

I knew somebody just like lsbets. He even carried a gun. One day somebody gave him a whack on the head from behind. His money was gone, so was his gun and he had a fractured skull. Cash is a lot more tempting than credit cards to some crooks.

[TJDave]

He doesn't keep money in a bank and pays with cash. Nothing wrong with that. Why would Big Brother care?

He cares... and is continually making it more difficult to operate with cash.

Because we have proven to be untrustworthy. ;)

[boxcar]

He doesn't keep money in a bank and pays with cash. Nothing wrong with that. Why would Big Brother care? I was thinking about if word got out that there might be a large amount of cash to be had some low lifes would make a run at it.

The government, for you info, really hates big cash transactions. In fact, they're not fond at all of cash transactions, generally, because cash can't be traced the way electronic or check transactions can be. Once you put it out there that you're a big Cash Fan, it could put you on Big Brother's radar.

Also, for your info, I believe that an idea that has been floating around for a long time now (first in Europe and now here) will eventually come to pass: A cashless society where all commerce will be transacted electronically. Save for IRS refund checks, the government for the most part no longer mails out checks. And I believe that eventually, the IRS will mandate electronic refunds only.

Boxcar

[boxcar]

He cares... and is continually making it more difficult to operate with cash.

Because we have proven to be untrustworthy. ;)

For once, you have finally hit the bull's eye. :) However, nothing has been "proven" per se. It's just presumed.

Boxcar

[boxcar]

I knew somebody just like lsbets. He even carried a gun. One day somebody gave him a whack on the head from behind. His money was gone, so was his gun and he had a fractured skull. Cash is a lot more tempting than credit cards to some crooks.

But look at the bright side to that unfortunate experience: the LS-like guy still held on to his life and didn't get shot with his own gun. :lol:

Boxcar

[lsbets]

He doesn't keep money in a bank and pays with cash. Nothing wrong with that. Why would Big Brother care? I was thinking about if word got out that there might be a large amount of cash to be had some low lifes would make a run at it.

To the gun question, I feel I'm well protected, and well armed, and more importantly able to take care of myself. Too many people feel safe because they have guns and are not capable of using them.

As far as big brother, I'm not doing anything wrong, so it doesn't phase me. I know a pattern of cash withdrawals can trigger reports from the banks to the feds, and while I think it is an intrusion on my privacy, since I am not involved in any illegal activities, I don't have anything to hide.

And Goren :lol: Your scenario wouldn't happen with me, I can guarantee you I'm never in a position where that would happen. But thanks for thinking of me. :lol:

[fast4522]

States of Awareness, the Cooper Color Codes, the only way to go.

http://www.teddytactical.com/SharpenBladeArticle/4_States%20of%20Awareness.htm

[TJDave]

However, nothing has been "proven" per se. It's just presumed.

Boxcar

At the border coming back from Mexico I pull into the inspection booth. The guard sez, "What's in all those boxes?"

Personal items, not purchased in Mexico, I'm taking back to my home.

How do I know that?

Because I'm an honest person.

We stared silently at each other for a bit, then...

Fine, you can go.

[JustRalph]

I could have sworn you were going to end up with "no stinkin badges"

[Actor]

This got me to thinking... how hard would it be to go six months without using a credit card and paying everything in cash?The day before yesterday I had a repairman refuse to take cash. He also would not take a check. He insisted on a credit or debit card. That's never happened to me before.

I keep my credit cards (both of them) in my safe deposit box. He would not wait for me to go to the bank and get them.

I have one debit card but there was not enough in that account to pay him. I deliberately keep the balance on that account low (less than $100) because of ID theft concerns. (I use it mainly for internet purchases.)

He left without his money, saying he would just write me off. I don't know if that will affect my credit rating.

I had more than enough cash in my wallet to pay him.

[Robert Fischer]

also

4. If you withdraw or pay with large sums of cash it will simply cause a minor inconvenience and a delay. :eek:

[johnhannibalsmith]

...This got me to thinking... how hard would it be to go six months without using a credit card and paying everything in cash? I am sure I would spend a lot less.

Been doing it for about fifteen years now. It's easy. The world tries to convince you it is nearly impossible and people fall for it, but in the long run, it's actually a whole lot easier.

[Tom]

He left without his money, saying he would just write me off. I don't know if that will affect my credit rating.

Since US currency is legal tender for all debts, public and private, I suspect you are now clear - he refused legal payment, so you can fight any lie he may tell a credit agency. He has no right not to accept cash for services rendered.
He may refuse BEFORE, but once he accepts the contract, you have the right to use cash.

[Actor]

Since US currency is legal tender for all debts, public and private, I suspect you are now clear - he refused legal payment, so you can fight any lie he may tell a credit agency. He has no right not to accept cash for services rendered.
He may refuse BEFORE, but once he accepts the contract, you have the right to use cash.I think you are right but I don't think his refusal to accept cash cancels the debt. He, or rather his employer, could still bill me, in which case I will mail them a check. I'll bet they cash it.

[TJDave]

I keep my credit cards (both of them) in my safe deposit box. He would not wait for me to go to the bank and get them.


Forgive me for saying so but, "that's weird." That's the convenience in having credit cards. Do you not know that you are protected against theft?

[Actor]

Forgive me for saying so but, "that's weird." That's the convenience in having credit cards.
When you use a credit card you are taking out a loan. If I'm going to borrow money with a credit card I want to force myself to think it over carefully, then have to force myself to go down to the bank and get the card.

They'll take plastic at Mickey Dee's. I don't want to be even remotely tempted to take out a loan to buy a big mac.

Do you not know that you are protected against theft?Yes. My brain knows it, but deep down my gut does not believe it. :bang:

[cj's dad]

One other thing:

If you go to locally owned business, you can still get a discount when paying cash. A couple of weeks ago I bought a new fridge and oven. I got them to take $100 off by paying cash. The total was a little over $3700 and like 28 cents. He laughed when I went to the car to grab the change and I paid him exact change. Said they see that maybe once a year.

CC's charge the business 3% or more or in this case $111. You saved the business $11.

[Tom]

I think you are right but I don't think his refusal to accept cash cancels the debt. He, or rather his employer, could still bill me, in which case I will mail them a check. I'll bet they cash it.

Charge them for the check! :D

[Actor]

We ordered some Chinese food last week from a place that delivers. The girl on the line asked how I wanted to pay. I said cash. She said it would be better if I used a credit card. I declined. She took the order and the delivery guy accepted my cash.

We went to see Lincoln last Sunday. There's a sign on the theatre box office that says "We accept cash." Really! :lol:

[HUSKER55]

:lol: :lol:

NOW THAT IS FUNNY!

[thaskalos]

The day before yesterday I had a repairman refuse to take cash. He also would not take a check. He insisted on a credit or debit card. That's never happened to me before.

I keep my credit cards (both of them) in my safe deposit box. He would not wait for me to go to the bank and get them.

I have one debit card but there was not enough in that account to pay him. I deliberately keep the balance on that account low (less than $100) because of ID theft concerns. (I use it mainly for internet purchases.)

He left without his money, saying he would just write me off. I don't know if that will affect my credit rating.

I had more than enough cash in my wallet to pay him.

And then we wonder why businesses in this country are folding.

Who in their right mind would refuse cash as payment?

I only patronize businesses that offer you a DISCOUNT for paying cash. :)

[Tom]

Problems exist with cash.
Ownership is defined by who possess it. Your delivery people can get robbed of cash. Your store can get robbed of cash. If you have a cash business, you have to pay to secure it, transport it, protect it.

Checks are obviously risky.

Credit/debit cards not only avert those problems, but provide records of transactions.

And, as a business, you have a better shot of getting extra purchases put onto a card than you do of getting someone to peel off a few more bills fro the wad.

[thaskalos]

Problems exist with cash.
Ownership is defined by who possess it. Your delivery people can get robbed of cash. Your store can get robbed of cash. If you have a cash business, you have to pay to secure it, transport it, protect it.

Checks are obviously risky.

Credit/debit cards not only avert those problems, but provide records of transactions.

And, as a business, you have a better shot of getting extra purchases put onto a card than you do of getting someone to peel off a few more bills fro the wad.
It could be my distrustful nature...but I don't think this push for a cashless society has noble motives; there are plenty of risks associated with credit card use too...

I think it's a case of Big Brother widening his web...

[PhantomOnTour]

Cash is king!
Especially when getting work done on your car...almost always a discount for paying cash.

On a strange note, i was watching a show about the post Katrina drug boom in New Orleans, and they had a drug dealer who would let you swipe your credit or debit card (on a gizmo attached to his smart phone) to buy your drugs....amazing.

[Buckeye]

I knew somebody just like lsbets. He even carried a gun. One day somebody gave him a whack on the head from behind. His money was gone, so was his gun and he had a fractured skull. Cash is a lot more tempting than credit cards to some crooks.

Excellent point RG. I've read there are people who will kill you for $5.

[JustRalph]

Cash is king!
Especially when getting work done on your car...almost always a discount for paying cash.

On a strange note, i was watching a show about the post Katrina drug boom in New Orleans, and they had a drug dealer who would let you swipe your credit or debit card (on a gizmo attached to his smart phone) to buy your drugs....amazing.

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