Sharing Daily Discoveries About Personal Finance And Business Topics

Paying Cash For No Protection

large business and finance

Today a person was asking me if they could borrow a few hundred dollars to pay this person to do some kind of renovation job. It was under $1000 and it seems like this is one of those companies where they say “Pay me in cash and you get a discount” type of setup. While that is usually a sign to turn the other way, it was kind of amazing at how little money the person would save versus the risk they could take.

It looked like the person would be saving a mere $30 by paying everything in cash. Ultimately this means no protection for the buyer if the provider does a bad job or then starts to claim that they never promised to do certain work. Is it really worth it in that case? I would personally always use the credit card or even a cheque for service based transactions like these just so that you have a record of it.

Too many times you will deal with people that try to cut corners in the service that they provide you afterwards as once that money is in their hands it is out of your control. Saving an extra $30 in this case is not worth the risk of potentially losing your $1000 as an example. I don’t even like places that try to enforce a surcharge of sort when you use a credit card to make purchases where they try to persuade you to use cash only.

Consider that as your warranty I suppose. If you had a choice would you say take the standard one year warranty off your new TV to save like $50 on your $1000 item? Wouldn’t sound like a good deal I’d say.

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