Cash is still king for debt-averse Germans

[Lars77]

Germany is lending its European neighbors billions of dollars to save the eurozone. But the German people are very reluctant to get into debt themselves.
In fact, people there use cash to pay for things at a far higher rate than in other big economies. And most Germans would rather rent their home than buy, in order to avoid going into debt.

It's a frame of mind that helps explains Berlin's tough stance on European bailouts.

[SheilaT]

1. I'm not even of German extraction myself,

but I pay cash for many things everyone else I know uses a credit or debit card for.

I've noticed that many people who've switched to never using cash and always using a debit card are often just about out of money in the account right before the next paycheck hits. Many of the same people who claim that it is simply not possible to save any money these days, nonetheless feel quite free to get an expensive coffee any time, or make all sorts of small impulse purchases.

Back in the 1950's many working class people paid cash for all of their regular bills. I can recall quite clearly going with my mother as she went to pay our various utilities. It's possible she wrote checks, but I'm thinking I was watching a cash transaction every time.