I have never had any problems with credit cards. Yes, I suppose there is a risk of identity fraud, but if it happens that is not my problem. Yes, it would cause problems and heartache in the short term, but I still think it is safer to use plastic. I would be worried about losing a quantity of cash.
When we are abroad, we take both Visa and Mastercard. I carry both Visa, and Mrs P both Mastercards. We also have a debit card in the caravan safe, just in case. Thus if a wallet or purse is lost, we can cancel one card but still have two valid cards.
Taking too much local currency is OK if you plan to visit that country again, but changing back to sterling is expensive as they offer a much lower rate.