Keeping a $20 bill in your pocket can seem like an enticement to spend it. That cash can also help you have less credit card debt by not having to swipe a credit card for small purchases.
A recent study by the Urban Institute found that using cash when a purchase is under $20 left the consumer with $104 less in revolving debt, on average. That dropped their credit card balances 2 percent below their baseline average.
For young people, the $20 cash rule led to more savings. People under 40 who were reminded "Don't swipe the small stuff" and to use cash on purchases for less than $20 had $173 less in revolving debt. ...continue reading