{"id":110534,"date":"2025-10-31T11:14:11","date_gmt":"2025-10-31T11:14:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/110534\/"},"modified":"2025-10-31T11:14:11","modified_gmt":"2025-10-31T11:14:11","slug":"experts-weigh-in-on-which-is-best","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/110534\/","title":{"rendered":"Experts Weigh In on Which Is Best"},"content":{"rendered":"\n

Cash or credit<\/a>? They\u2019re both forms of payment, but according to experts, some forms are better than others when it comes to paying for holiday expenses.<\/p>\n

In a new survey from PwC<\/a>, shoppers were asked about their preferred payment methods for holiday spending. According to survey respondents, debit cards were their No. 1 preferred payment method (55%), followed by credit cards (52%), cash (48%), gift cards\/prepaid cards (27%), PayPal (27%) and loyalty points\/rewards (17%).<\/p>\n

Read Next: Here\u2019s How to Fix Your Budgeting Problems, According to Kumiko Love<\/a><\/p>\n

Find Out: 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)<\/a><\/p>\n

While these are the top ways, experts say there\u2019s no one-size-fits-all answer for the \u201cbest\u201d way. \u201cThe \u2018best\u2019 way to make holiday purchases will depend on both the purchase and the individual consumer,\u201d consumer finance and debt expert Austin Kilgore, analyst with the Achieve Center for Consumer Insights<\/a>, wrote in an email.<\/p>\n

Here\u2019s what experts had to say about the top payment methods for holiday spending<\/a>.<\/p>\n

Michelle Smoley, director of personal and college finance at Bright Horizons College Coach<\/a>, said gift cards can even be more secure than cash. \u201cThey can curb spending as card balance amounts are preloaded,\u201d Smoley wrote in an email. \u201cThey offer consumer protection, and most can be replaced if lost or stolen.\u201d<\/p>\n

But according to Smoley, they also have downsides. \u201cOne often overlooked downside to gift cards is they can lose value over time due to fees,\u201d she explained. \u201cWhile federal law states that gift cards cannot expire for five years, they often do expire.\u201d<\/p>\n

Kilgore recommended tracking your balances and, if necessary, asking a cashier before checkout if you can split purchases between payment methods. If making a purchase online, read the fine print before doing so.<\/p>\n

Check Out: 8 Frugal Habits Americans Are Ridiculed for \u2014 and Why You Shouldn\u2019t Care<\/a><\/p>\n

\u201cThe rule for credit cards is to use them only when you know you can, and will, pay off any balance in full when the bill comes,\u201d Kilgore explained.<\/p>\n

But Smoley also warned that credit cards make it too easy to overspend and blow the holiday budget<\/a>. She recommended tracking your spending if using credit cards.<\/p>\n

\u201cOne useful tip is to track and add up each receipt as you use your card. I use the calculator and note apps on my phone to do this,\u201d she explained. \u201cIt does not take long to spend $500 or even $1,000 while out shopping. Those $175, $250 and even $50 receipts can add up quickly.\u201d<\/p>\n

Smoley also pointed out that credit cards offer expanded liability coverage in case of fraudulent activity. Plus, they offer card members the opportunity to earn rewards like airline miles or cash back.<\/p>\n

If you use credit card loyalty points or rewards<\/a> for purchases, Kilgore advised checking your statements or online account to see your balance. \u201cRedeem for cash or gifts. Sometimes, a card issuer will even have \u2018specials\u2019 where your balance can be redeemed for more,\u201d he said.<\/p>\n

But using your rewards makes sense only if you can pay off the balance each month. \u201cEarning 1%-2% in points sounds tempting, but it\u2019s no deal if you\u2019re paying 20%-24% interest on the balance,\u201d explained April Lewis-Parks, director of financial education and communications at Consolidated Credit<\/a>. \u201cUsing cash or debit keeps spending intentional and your finances stress-free.\u201d<\/p>\n

Debit cards can be a great way to pay for gifts, as they can help you avoid taking on debt, and some even have a daily spending limit, according to Smoley. But she recommended cash.<\/p>\n

\u201cCash is king for curbing holiday spending<\/a> and keeping your budget on track,\u201d Smoley said. \u201cConsumers often find it more difficult to hand over cash than it is to whip out a credit or debit card to pay for items.\u201d<\/p>\n

But the biggest downside to using cash is that there\u2019s no consumer protection on items purchased. This means that if you lose the cash or it\u2019s stolen, it\u2019s gone for good.<\/p>\n

More From GOBankingRates<\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: The Top Ways People Are Paying for Holiday Expenses This Year: Experts Weigh In on Which Is Best<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Cash or credit? They\u2019re both forms of payment, but according to experts, some forms are better than others…\n","protected":false},"author":2,"featured_media":110535,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,30383,26793,246,79239,68172,111,139,69,244,245,79238,79237],"class_list":{"0":"post-110534","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-credit-cards","10":"tag-debit-cards","11":"tag-finance","12":"tag-holiday-expenses","13":"tag-holiday-spending","14":"tag-new-zealand","15":"tag-newzealand","16":"tag-nz","17":"tag-personal-finance","18":"tag-personalfinance","19":"tag-preferred-payment-method","20":"tag-preferred-payment-methods"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/110534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=110534"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/110534\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/110535"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=110534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=110534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=110534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}