Cash advance in the form of credit cards or an overdrawing limit on a personal bank account have been of considerable benefit to a large number of people in a variety of circumstances. It is true that the advance, taken in whichever form always ends up being relatively costly when compared to making the payment from ones own savings. This is due mostly to the application of various charges and fees on that particular type of cash advance. However it is indisputable that it is a service of enormous benefit to people who need the cash and simply do not possess the necessary savings. Examples can be emergency medical treatment for people on holiday, an unexpected bill or one of many such occurrences.
My own particular experience is of the time I was a student in a university. I did not always possess the necessary savings to pay for my tuition fees or living expenses, so the cash advance literally allowed me to survive. If I did not have access to this facility then in all likelihood, my going to a university would have been quite improbable. Hence the benefit to students like me, even considering the added payback cost, is greater than the monetary value. In a way, students secure the cash advance against a portion of their future income, which receives a substantial boost from going to a good university and getting an in demand degree.
Another example of the beneficial use of a cash advance is the purchasing of a car or the starting up of a small business. In any situation where the alternative of paying in installments is not available, the cash advance allows you to create your own repayment schedule. In a way this financial service by itself is responsible for the creation of a large number of small businesses on a global scale, especially dotcoms.
