One of the biggest contributing factors to debt in the world, is the fact that we have literally lost touch with our money. The wide acceptance of payment methods where you do not physically trade with something you touch, for example Credit cards, debit cards and electronic money, could make it easier to spend money.
In South Africa, a company is testing this theory with a reality series, where the contestants are given their monthly salary in coins. The idea behind this is to see what impact this has on the spending habits of these people, when they pay for everything in physical coins.
Source :
www.onerandfamily.co.zaQuestion 1 : If Bitcoin or Crypto currencies replace fiat, would you spend more or less?
Question 2 : Do you think physical contact with your money, makes you spend less?
Question 3 : Would we have less debt, if we paid for everything in fiat?
I am positive if everyone did this, they would spen less.
Its SO easy to walk into a store and grab even 10-$20 worth of stuff you dont NEED, but with a credit card there is no IMMEDIATE paid of spending. Its TOO easy.
With cash, seeing say $100 dwindle down to 25, when you coudl still have $50, clearly makes it harder to spend that extra $25.
But people want instant gratification these days, even if it means painfully paying off that credit card down the road