In the era of digital payments, how can one spend money without going into debt?

After the pandemic, Americans have really abandoned cash. According to Worldpay's 2024 data, digital wallets have become the number one payment method for e-commerce, with cash accounting for only 12% offline, expected to drop to 8% by 2027.

The problem arises: when you can't see the money dropping, it's particularly easy to overspend. The average credit card debt for Americans has reached $21,541 (as of June 2024), while credit card interest rates have soared to 23.37% (Federal Reserve data).

How to avoid pitfalls?

1. Use credit cards like debit cards Pay off the bills every month. The interest is too harsh; missing a payment is like a bottomless pit.

2. Set limits for yourself Set the credit limit slightly above the monthly regular expenses. Many banks also have a spending alert feature that sends a text message when you are close to the limit.

3. Regularly Review Consumption Regularly check your statements using accounting apps or bank apps to compare with your budget. Don't wait until the bill comes to find out, “Why did I spend an extra $200?”

4. Cash can still be used No money is just no money, credit cards can be swiped endlessly, but debts must be repaid. The physical constraint of cash is sometimes the best financial management tool.

Core logic: Digital payments are fine, the key is to have a “spending feeling”.