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But when should you use a credit card especially post-retirement?
We spoke with a retiree who uses a credit card to cover 95% of hisspending.
He explained why it works for him and his family and shared the rare occasions he uses cash.
Keep reading tosee if his financial system could work for you.
He lives with his wife in Central Oahu, Hawaii.
Theyre financially independent and have been retired for over 20 years.
Were keenly aware of the psychological effect of spending more with credit cards than we would in cash.
Here are a few reasons why Nordman and his wife turn to credit cards almost exclusively.
With a credit card, the exchange happens automatically and electronically, making transactions much simpler.
We carry a Visa card and an American Express card, and one of them is almost always accepted.
Fraud Protection
If your cash gets stolen, you havevery little recourse.
We keep a separate card dedicated toonline spending and subscriptions, Nordman said.
Its less hassle to change that card if theres online fraud.
Rewards
Maximizingcredit card rewardsis less important to Nordman than enjoying the other perks described above.
However, he uses his daughters Amazon card (with her permission!)
when shopping on the retailers website, so she gets the 5% reward.
Then, he reimburses her every couple of weeks.
Some of our utilities still wont accept credit cards, Nordman said.
Should You Use a Credit Card or Cash?
Whether you pay with a credit card or cash is apersonal and nuanced decision.
