In today’s world, you are tracked (stalked) everywhere. You leave medical footprint, you leave internet traces and of course you leave money traces if you use credit or debit card for payments.
If, on the contrary, you pay as much as you can with cash, you don’t leave any paper trail. Even if creditors, or identity thieves come after you, you left nothing behind, so creditors won’t be able to prove that you paid this and that and identity thieves will have much more trouble, since your usage of credit and debit cards is low.
For online payments, you should consider paying with Bitcoin, wherever this is possible. Bitcoin is like virtual cash, leaving no traces behind. If you however use credit and debit cards, nosy credit card companies know all about your purchases, behaviors and patterns.
If you really have to use credit card, then use one prepaid with no name on it. But other than that, avoid paying with cards as much as possible. This greatly reduce identity theft possibility, since your data is not stored, recorded, archived and searchable.
You can even avoid jail with using cash only. Let me give you a real life example: Mary bought medications for her husband and daughter, using credit card. Unfortunately for her, she bought medications which contain ephedrine. Law in that particular state says, that you can buy such medications in limit amount over one week period.
She exceeded that amount and she bought it with credit card. Without knowing, Mary put herself into trouble with law and was later charged and forced to pay for the criminal prosecution. If she would use simply cash, this wouldn’t have happened. With using cash, she wouldn’t left any paper trails and it would be practically impossible to connect her with buying medications.
If you decide paying mostly with cash, you want to proceed carefully with withdrawing cash from the bank. If you withdraw over $10.000 you might need to file Currency Transaction Reports as if you would be some kind of criminal to want your cash physically instead of having it in the bank.
So withdraw smaller amounts than $10.000 and you will be ok.
One caveat with using cash is it might get stolen, so don’t show off with it and keep it hidden.
Note that banks and people who have access to your credit and debit cards purchases, make your profile based on your purchases. If you really want to use credit and debit card, you can craft it in profile you wish.
You can buy only particular products and services with credit or debit card and use cash for everything else. This way banks and marketers will only have your profile based on how crafted it.
The more you use cash, the less information will appear in financial statements, so nobody will know about your cash purchases. Using cash have a great privacy benefits, whereas using credit or debit cards leave the paper trail.
The only caveat using cash is, it might get stolen, but if you are careful about it, it has big benefits for your privacy, leaving no paper trail behind.