Same-Day Pay: Good or Bad Idea?
If something ever epitomized the phrase “you can’t have your cake and eat it too,” it’s same-day pay. After all, you can’t simultaneously use your pay the same day and retain it for future use. Once you access it, it’s gone.
That being said, is same-day pay a good idea? It definitely has its benefits and drawbacks. Let's take a look at each and see whether same-day pay makes sense for you—or if there’s a better solution.
Pros of Same-Day Pay
There are quite a few different ways you can get same-day pay. You can be in a position that pays daily, your company can offer a payroll card and you can get a payday loan. While some of these are better options than others, here are some of the general benefits of same-day pay:
- Access extra income immediately
- Pay off unexpected bills
- Take care of repairs that pop up
- Pay down debt
- Avoid late charges for recurring bills
- Keep utilities on
- Avoid overdraft fees
Cons of Same-Day Pay
While same-day pay can alleviate many of the financial burdens that employees face on a daily basis, it does have some drawbacks. Here are some of the disadvantages people experience when they opt for same-day pay:
- Less funds on payday
- Transaction fees and other charges
- Possible increased spending on interest
- Stress living paycheck-to-paycheck
- Inability to save for the long-term
- May have to work extra shifts to cover for spent pay
Spentra: The Perfect Compromise
Full access to your paycheck each day may sound ideal—and it could be if you didn’t have any debt—but in reality, it can create a stressful situation with financial insecurity. What’s the solution? Pay access. Specifically, pay access with Spentra.
Our Money Earned feature lets you enjoy all of the pros of same-day pay without many of the cons. How? By giving you access to 50% of your earned pay with the Spentra App. With Spentra, you can avoid late charges and pay off unexpected bills, but because you’re only accessing half of your earned money, you’ll still have some available on payday. This allows you to better forecast your budget and get in a rhythm of spending money wisely.
If you’re interested in having Spentra at your place of business, contact us today.