Cash vs. Debit Cards

I just ran across a debate on a personal finance forum about cash vs. debit cards.  In my experience everyone is different, and some people are able to manage their finances better using cash while others do a better job using debit cards.  Personally, I prefer debit cards, but that’s just me. 

Here are some advantages and disadvantages of each:

Cash:

• less likely to overspend because you are more aware of what you are spending
• spending cash makes you stop and think "do I really need/want this?"
• less likely to impulse buy with cash
• psychological aspect - some people find it harder to spend cash
• harder to track spending with cash
• can use the envelope budgeting system with cash

Debit cards:

• easier to overspend because you don’t see it the same way you do cash
• debit cards don’t "feel" like cash, so you aren’t as aware of your spending
• easier to track your spending because it leaves a "paper" trail
• cash can "slip through your fingers", this doesn’t typically happen with debit cards
• harder to use the envelope system with debit cards (but it can be done)
• there is always the risk that you will become a victim of identity theft or fraud with debit cards

So what do you think?  Cash or debit card?  Which do you use and why?

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