Why do most people prefer to use cash for payments even if they have credit or debit cards?

If you pay by cash, the transaction is finalised there and then and there's no problem regarding finding the money at a later date. In addition, when your pocket is empty, you know you've reached your spending limit. Paying by debit card is the next best thing, but even that can lead to overspending, as you're not actually handling cash. For many people, shopping with a credit card is fatal; they feel that they're not actually spending money; these are the people who will run their credit cards to the limit (and sometimes more than one!). Then, at a later date when the purchased goods are no longer brand new, the reality sets-in and the debts can lead to great suffering, maybe mental illness and even suicide. I find it heartening to hear that you've observed most people paying with cash, because when I lived in the UK, I observed that most purchases were credit card transactions.

Because people who can pay cash can afford too buy the product they are purchasing.Most people using credit cards can not afford what they are financing.People with lots of credit card debt are living a expensive lifestyle that they could not afford if their cards were takin away from them.Cash is king.

they don't want to go into debt farther

They don't . . . check the statistics.

I would sure like to know what town that people use cash. I see most people here in down pay by debit, check or credit I think the US is not quite ready to give up cash. When they do. Banks will have to give everyone a debit card and an account. I use all methods except checks it-Debit, Credit and Cash. Sometimes people that use debit card are up their daily limit. So they use cash instead. I have seen at times where it has been faster to use cash then debit.

They don't want to run up their credit cards and get into debt. When your cash is gone it is time to go home!

Having worked in the hospitality industry, I have a strong aversion to debit cards and don't even want to own one. So many things can and do go wrong with them at hotel front desk transactions. On a credit card, it's just way too easy to "let it ride" and not pay it off that month, even if you had good intentions. Then you are stuck paying interest and overpaying for the item or service. Better to just ante up the cash at the time of purchase and it's over with for good ... no complications.

Sometimes you dont want someone to know what your spending your money on...i.e. Big Brother, the old lady....etc. For example, It wouldn't be too good for your wife to find out by checking your statements that you've been spending all your money at Miss Lees Oriental Massage Parlor. I think also alot of people are just used to using cash, kinda like people that still write checks at the grocery store when they can use their debit card or wirte a check to pay their bills and put it in the mail when you can do it online electronically and not have to pay for the stamp. Sometimes you just cant teach an old dog new tricks. Oh and by the way, if you pay your credit cards off in full before the next bill comes you dont have to pay any interest.

Those are the smart people cause they have no bills at the end of the month or their credit cards could be maxed out !!!!! Probably the latter cause on my credit card I get 5% on all my purchases including medicine , gas , groceries , rent , car payments etc . Only people with great credit scores get that perk . !!!!!!!!