Will cash become extinct?

What Canadians can do in a cashless society

TORONTO, ONTARIO, March 2, 2017 – Remember the days when cash was an acceptable form of payment? Well those days are quickly becoming a thing of the past according to the head of Moneris.will cash become extinct

Angela Brown, the president and CEO of Moneris made the claim during an interview for the Business News Network. Moneris is a debit and credit card payment processing merchant who regularly tracks the spending habits of Canadians on a quarterly basis. In recent years, Moneris has recognized a trend among Canadians – they are paying more with their credit card. For Q4 2016 credit card transactions accounted for 63.8 per cent of purchases. Will cash become extinct in the future? Given the recent spending habits of Canadians, Brown predicts cash will be near obsolete by 2030.

“At the end of the day, Canadians prefer convenience over anything else. There is nothing wrong with quick and easy payment methods. The problem lies when you just spend without any regard for how much you are spending on a daily basis,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.

“Tap and go payments can quickly lead to a pile of debt if you are not too careful. You have to create a strategy to stay on top of your electronic payments. When there’s no plan in place, this is a guaranteed recipe for a debt disaster,” says Schwartz.

And a debt disaster is something many Canadians cannot afford right now. The reality is 48 per cent of Canadians are living paycheque to paycheque which is making it hard for some to even consider saving for retirement or an emergency fund.  Add the average debt load of $22,081 many Canadians are carrying and an already bad situation can be a lot worse if electronic payments get out of hand.

To help Canadians keep their electronic payments at bay, Consolidated Credit Counseling Services of Canada, recommends the following:

Know your limit

Let’s be real, spending money is fun. The thrill of buying something you saw while shopping is an exciting prospect. However when you spend more than what you bring in; that’s where the problem lies. So sit down and create a budget factoring all of your expenses – even your projected electronic ones by credit card or Apple Pay.

Understand when to say no

If you’ve spent above your means for years on end, it may take some patience to adapt new spending habits to suit your new frugal lifestyle. At the end of the day, you need to say no to yourself when you spend more than you earn. Remember a need is something you cannot live without and a want is something you can live without.

Cash please!

Instead of relying on your credit card to make payments, learn to carry some cash in your wallet. This way you can only spend the money you have. When your money is gone – your shopping trip will end too! Alternatively, if you do not feel comfortable carrying cash, use your debit card where ever you go. Just make sure to keep an eye on your bank account to keep track of your purchases.

Tapped out?

Tap and go technology can sometimes get the best of us. You can end up in a corner of debt with no visible way out. When you’ve had enough of running from your debt, seek the advice of a trained credit counsellor. Credit counselling is the key you need to crush your debt.


About Consolidated Credit Counseling Services of Canada, Inc.:

Consolidated Credit Counseling Services of Canada is a national non-profit credit counselling organization that teaches consumers about personal finance.

For more information or to request an interview with Jeffrey Schwartz, please contact:

Natasha Carr, Community and Public Relations Manager,
Consolidated Credit Counseling Services of Canada, Inc.,
T: 416-915-7283 ext.1041, C: 416-830-4720, F: 416-915-5200, E: ncarr@consolidatedcredit.ca

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