The Downside of a Cash Advance

Money has become one of the basic necessities for survival. Without it, a person cannot literally do anything. Purchasing of basic needs like food, water, shelter and clothing cannot be done without it. Other stuffs that a person needs in his/her everyday activities are also affected. Of course, working is the only known way that can help a person earn money, which in turn will enable him/her to provide his/her own needs besides allowances or pensions. However, there are instances when money needs to be used right away. That’s why companies offer workers this process called the cash advance process.

However, a cash advance only offers a quick fix to the worker that asked for it. Here are some of the many reasons why an employee should not do this unless extremely needed.

Apparently, getting a cash advance will entail interest and other extra fees. Since most of these transactions happen outside the company, then it is a given that the worker will be paying more that what he/she has borrowed. Most of the extra payments done are extremely high, so a worker should pay more attention with his/her bills. In addition, this will cause additional strain for the worker, since he/she is already having a hard time with financial difficulties.

Moreover, getting a cash advance actually requires a lot of effort and time from the worker. This might be normal for such financial transactions, but these processes actually do not guarantee the output. Most companies usually require a lot of documents or papers from the borrower, only to reject their applications after.

Usually, this opportunity is given to workers because many of these companies think that they will be able to rake in interests by the time the workers receive their next salaries. This does not happen all the time, though. There will be instances when workers will not be able to pay on time or workers will have to skip the payment process for a more important thing. In turn, companies might offer more services to “aid” a worker with his/her needs, only to give another payment set for the worker.

It is not bad if a worker opts to go for this process when he/she is really in need. Luckily, there are many other alternatives that he/she can do without feeling the brunt of paying for high fees and interests. For instance, instead of borrowing from a money-lending company, the worker can instead borrow from a friend of him/her that is generous enough to give him/her some bucks. With this, he/she will not have to pay for extra fees unless his/her friend tells him/her to do so, which is very unlikely to happen.

In fact, doing a cash advance is not even necessary if only the worker is responsible in handling and dealing with money. As much as possible, workers should stay away from these offers, since they do more harm than good. Instead, a worker can do damage control so he/she can use his/her money more efficiently than ever.

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