payday loans

How 12 Month Payday Loans are Better to Support Your Finances

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An unexpected encounter with emergency seems to be threatening when you are running out of money. Even though you have some money set aside, you cannot cushion the blow of unexpected expenses. In this situation, you turn to direct lenders because they disburse money quickly.

Whether or not you have a bad credit rating, paying back a payday loan can be challenging for you because they are paid off as immediately as you receive your next paycheque. Though these loans can finance your needs at once, there is also a risk of being falling into the trap of a debt spiral. Therefore, some lenders have introduced 12-month payday loans with no guarantor so that you can reimburse the debt in installments.

These loans are also known as yearly installments, which allow you to pay back borrowings in 12 equal installments. One of the most common reasons for their popularity is they are cheaper than payday loans. Here are other reasons why these loans are a better option than other short term loans to finance emergency needs.

You can borrow for any reason

You need funds because your machine is out of commission or your car needs a repair. Whatever the reason, you just need to fill an application form online and submit it. The lender will run a soft credit check and disburse you the amount within a couple of minutes.

If your financial report is not as good as required, the high-interest rate will be imposed. However, you can negotiate for interest rate if the reverse is the truth. You do not need a guarantor and collateral to have the loan approved even if your credit rating is poor.

You can apply for these loans even if you are unemployed

If you are out of work, you will normally apply for unemployed loans. However, not all lenders disburse funds because they do not rely on your repayment capacity. If your part-time job, govt benefits or income-generating asset proves stronger financial stability, the lender may approve your application.

In this case, you can apply for guarantor loans for the unemployed. These loans require you to have a guarantor with a good credit history who will be obliged to pay back the debt if you commit a breach. In the beginning, you can utilize your current income sources such as a part-time job or income-generating asset unless you get full-time employment.

No need of secured asset

12-month payday loans act as the short term loans and hence lenders do not ask for collateral, which means you do not need to put your assets against the loan. If you make defaults or miss payments, penalties will be charged only.

You should pay all of your dues on time to avoid additional interest and late payment fees. Though these loans need a year to repay, you should not finance your long term needs with such loans, or else the never-ending circle of debts will catch you. Yearly tenure is generally to ease out your payments.

Payment flexibility

Payday loans impose high-interest rates on borrowers and they have to pay within 14 to 30 days. Therefore, it becomes convoluted to pay back the debt in time. With installment payday loans, you have the flexibility to pay back your debt in equal installments so it divides the burden over a period of 12 months. You can easily manage your budget to reimburse your borrowings.

12-month payday loans are relatively cheaper than payday loans, yet you need to be responsible. You should carefully look over your financial stability before you apply for these funds. You should always choose a lender who disburses money after considering your income sources. This will prevent you from a debt web.

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