Australian minimum-wage earners know for a fact that it is their right to be compensated for all of their hours worked. For the most part, their employers are covered under prevailing employment and labor laws that dictate how much they should pay them, depending on the number of hours they performed their work. Indeed, the laws set certain standards as to the minimum wage rate. Covered employers must not pay their workers less than certain rate imposed by the government, and that it is also imperative that they provide them further compensation if they are able to perform overtime work.
Although that is the case, many minimum wage employees often experience problems when they deal with their finances. Although they do receive complete pay and compensation, some of them have trouble making ends meet. Some don’t even receive enough pay because their employers either delay their payments or don’t pay them at all. In such an event, they could not really afford to encounter an unexpected expense, which could complicate matters even more. Depending on how they are able to manage themselves with regards their finances, some employees often end up not just getting paid in full by their employers, but also incurring debt.
Fortunately, in many circumstances wherein minimum wage employees have a hard time keeping their finances steady, they could always turn to payday cash advances to allow them to make ends meet. Basically, these are short-term loans that allow individuals who are short in finances to be able to meet certain expenses, especially urgent ones. These are perfect for minimum wage employees who have already exhausted what they received in their last payday and are just waiting for the next.
But because cash advances often vary depending on the jurisdiction and the employer, it is important for minimum wage employees in need of cash to be aware of the advantages and disadvantages of availing these short-term loans. That way, they may be informed as to what to expect when they get short with their finances.
Listed below are the advantages related to instant cash loan:
- It is easy to qualify for the said service because the worker is only required to show his or her ID and proof of income from the paystubs.
- As long as there is proof of income and that his or her other cash advances did not end up in default, the worker is more likely to be approved of cash loans.
- Payday advance providers know when workers ask for such a loan that is bigger than what they make. Indeed, the amount of money that can be borrowed is usually small so as to prevent the occurrence of debt. That way, he or she is able to return the amount borrowed at the target date.
Listed below are the disadvantages related to instant cash loan:
- The interest rate is often high, but that would depend on the institution or provider of the cash loans.
- It is good to obtain a payday advance to cover a financial emergency. However, if the money borrowed is still not enough to cover another unforeseen expense, then it could be difficult for the worker borrowing money to repay it on time.
Knowing how to manage the finances as minimum wage workers is important. But in case of emergencies coming out of nowhere and cash is short to cover them, payday loans are there to help them until they could get their next paycheck. They should always remember, though, that this is only for any sudden circumstances that require money; it is never a long-term solution for those who are facing financial issues.