Cash Only. Is It a Viable Option?

Yesterday I stopped at Starbucks for coffee. A woman in line recognized me. She reads Northeast Cobb Patch, she said. I thanked her. We started talking about banks testing debit card fees. Her family earns $100,000 a year, she said, and so they aren't really concerned about bank fees.

For me, it's the principal of the matter. My pay is direct deposited. I use online banking and a debit card. These actions on my part save the bank money in paper, printing, and manpower. And the bank has use of my money as it sits in their account. I don't have an issue with reasonable checking account monthly fees and overdraft fees, but I am unhappy about paying a monthly fee to use a debit card.

I do not like being charged to use my own money. I already have to pay for my money to be securely in the bank.

My bank, Suntrust, will not charge me the $5 monthly debit card fee if I don't use the debit card or if I use their ATM to get cash. I don't understand the concept. I need someone to explain it. I'll be using the bank ATM machine which is a bigger piece of equipment to maintain, yet I am not charged.

The woman at Starbucks asked me why I was so fired up about the debit card fee. I said because every transaction we make will have a fee or tax, or both. I'm fed up with financial institutions. I paid my car off. I don't use credit cards anymore. I have no debt.

A man standing behind m said, "Young lady, you are ruining your credit rating. Is that what you want?"

What is the incentive to maintain credit? I'm serious. It costs me more money to maintain it (fees, finance charges, interest), and since the recession happened, banks are tight-fisted with loan dollars.If I maintain my credit there's no guarantee I'll be granted a loan.

If I pay cash, I don't overspend. What do I need credit for? I sold my house before the market went sour and I have no plans to buy real estate. My car is paid off and reliable. No car loan, more money for savings and fun spending.

Clark Howard said, "What is the monthly activity fee on cash? Zero. If you can't handle credit cards, go cash only."

Would you ever go "cash only"? Do you believe that credit scores matter even in this economy? Tell us in the Comment Box below.