No matter how much you earn, the list of outstanding ahead of payday is a constant thing. Consequently, you turn to a high-interest credit option to meet what is due. This is obviously not a viable choice as it has the risk of debt piling up for you.
An early payday app can solve this problem. What can it do? Any salaried individual can take out a part of the salary as advance before payday by using it.
So, covering an unexpected cash crunch is no more a big deal. Above all, this is an interest-free way of fetching cash when you are in a fix. This has eliminated your dependence on costly credit options to bridge the financial gap between paydays.
When “getting paid early” is not an alternative for you, borrowing money with legit loans for bad credit in Ireland could be a convenient option. Dealing with a cash problem is no more uncomfortable for you, provided that you are capable of bearing the cost.
To understand if this is a helpful initiative taken keeping employees’ concerns in mind, do flip through this guest post.
How does the app work?
When days prior to paycheck seem tough, an app can literally eliminate your worries. Instead of depending on costly alternatives, you can manage the urgent need by fetching a portion of your salary. This initiative has received approval from the Central Bank as well.
This is an exclusive facility meant to benefit the employees. Depending on the time you have worked by now, you can withdraw a certain amount of cash minus any interest. But this is possible only when your employer also agrees to it.
This app acts in association with the employee payroll and attendance system. This makes sure to give the employee an idea about the earned amount of money. After that, one can easily decide the suitable amount of cash to withdraw.
The purpose of this app is to put an end to the financial crisis that hits every salaried person before payday. Unlike loans, you will have flexible terms. Moreover, you cannot think of an affordable choice than this one.
In short, you can make use of the income in order to handle any temporary jerk. This also ensures you don’t have to seek the assistance of expensive substitutes that can literally make you bankrupt. You must note that a paycheck advance is characteristically different from other financing choices.
Types of early payday apps
So, the main motto is to keep you debt-free even when paydays are far. This app mainly concentrates on financial issues happening when you are stuck between paydays. There are ways this app operates, which are discussed below:
Accessible to any worker
Some apps allow access to anyone. This means it can be any person who has a bank account or have a specific work schedule. For this, your employer need not have to be aware of what is happening and what you are doing here.
Sponsored by the employer
There are other types also which need the consent of the employer. The employer should sign an agreement where readiness to offer this facility is given. This benefit program can be an approach towards helping the employees deal with personal finance management issues. Needless to say, this is a remarkable way to boost employee morale and retention.
Using an online bank program
Sometimes, few banks which operate online also offer membership programs to benefit employees based on their salaries. This can be utilized to get paycheck advances at a low cost. The range could vary depending on the limit set already or the amount you receive as a salary.
Advantages and pitfalls
When you live paycheck to paycheck, usual satisfying needs and uncertainties become challenging. You resort to ways to withdraw cash at whatever costs without bothering about the consequences. This could have a devastating effect, and you can lose control of your finances.
This app which entertains early pay withdrawal, is like a sigh of relief. Although you can get rid of the financial issues occurring ahead of payday with the help of the app, it has some downsides too.
With this facility, you can access cash conveniently without worrying about interest fees. But you should realise that you are taking out a segment of your pay. This means you will receive a salary amount excluding that segment.
You need to act smart and use these apps wisely. Otherwise, you will not be able to make the most out of this opportunity. Frequent use of these apps can become a habit for you. So, be careful and work out the best way to get benefitted from these apps.
It is easy for you to save money on overdraft fees by using this app. But make sure if the app imposes any service charge before you use it. This sums up that although these are intended to make life easy when a cash crunch hits, it is definitely not a dependable choice from a long-term perspective.
Ways to handle these apps intelligently
An initiative like this can seem appealing to people already going through a tough time with limited earnings. Still, some precautions are indispensable.
- Explore options carefully and search for details like service charge, limits, and speed of advance.
- Fix a limit depending on the amount that is convenient for you to manage.
- Keep revising your financial transactions to confirm what is going out and coming in.
The bottom line
This type of app has made it possible to obtain the needed money without waiting till the next payday. The best part is that you can rely on your income to withdraw the amount. Moreover, you are relieved from the interest.
This app can make your life sorted, provided that you use it cleverly. Getting used to such a habit of fetching money every month can be fatal. Then, it becomes difficult for you to skip the troubling cycle of debts.
This guest post looks forward to shedding some light on the ground reality of these apps.
