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12 Month Payday Loan - Use It Perfectly To Make It A Boon

The concept of 12-month payday loans is relatively new but it is proving a boon for the employed borrowers for short-term financial needs.

12 Month Payday Loan - Use It Perfectly To Make It A Boon

Friday May 03, 2019,

5 min Read

We can't always foresee the financial emergency to manage it well with reserved funds. Many times, we need an alternative but dependable source to get immediate financial help with least formalities and without involvement of third person. Everyone wants to hide personal financial problem because of social prestige, so, the option of borrowing from friends or relatives is often not considered despite being cheaper than borrowing from direct lender. Even the salaried people come across immediate finance need unexpectedly, when they need someone who could lend the required amount at reasonable and affordable price. Payday loan rests at top of the choices of salaried British professionals because of its salient benefits.  

What is Payday Loan?

 Payday loan, loan against wages or salary loan is a short-term personal loan format designed for salaried people. The monthly salary is accepted as the security against the loan. The lender takes rights to withdraw the certain amount on a particular date to recover the debt. Initially, these payday loans were sanctioned only for 28 days and the entire debt amount was to be paid back at the receipt of the next salary cheque. However, borrowers used to feel financially tight after paying entire debt in single amount and many times they used to fail in paying regular installments and monthly bills also drawing the significant drop in credit score. Realizing this problem of borrowers, payday loan lenders started to provide salary loan with 12 months repayment period. The longer repayment period simplified the repayment of debt without any financial stress and further drop in credit score.


Despite being high in cost, salary loans have been the preferred choice of employed people. Why do people take wages loans despite high interest rate? The following benefits overshadow the cost factor:

  • Suitable for bad credit borrowers

 A person, even with regular job, struggles to borrow money from regular financial agencies. Most of bad credit borrowers’ applications are turned down by the banks and financial institutions because of high-risk involvement. Leading Payday lenders in the UK do affordability check but compensate risk probability by charging high interest rate than other financial institutions. So, you get the desired financial help despite having poor credit report.

  • Easy application process:

Most of prominent direct lenders follow 100% online process for application, approval, and fund transfer. For most of salaried people, applying for wage day loan needs nothing more just than completing an online application form with financial and personal details.

  • Easy to monitor and manage:

Most of lending agencies allow the borrowers to manage their debt repayment online. The borrower is given anytime online access to a personal account to see the current balance, paid amount and forthcoming repayment date. Monthly installments are deducted automatically from the salary account. 

  • Early repayment facility reduces the overall cost:

The reputed direct lending agencies don’t levy early payment charges. It allows you to payback the debt earlier also to reduce the overall interest amount. In addition, you improve your reputation for future borrowing by paying the debt earlier than schedule.

  • Quick money for emergency:

Many times, you can't afford to wait for financial help from traditional sources like in case of car breaks or boiler malfunctioning or emergency travelling etc. The online process of wages loan help you get finance quickly by applying anytime even after when the mainstream regular banks shut down their shutters.

  • Freedom to use debt:

Most of personal loans are made available for the particular cause but the salary loan gives you freedom to use the amount in a way you wish. However, you should use the debt only for justified purpose keeping in mind its high cost.

  • Cost saver:

It might look surprising to you but it is true that payday loan may be cost saver for you. You can use the borrowed money to avoiding the hefty penalties for not paying the dues on the time. Plus, you save credit report from getting red marks. 

  • Short-term financial liability:

As the monthly installments are deducted automatically from the salary account, this loan type is paid back in complete on the time. The automatic process relives you from financial liability much earlier. In addition, on time debt repayment mark on credit report establishes you as a responsible borrower.

Are You Eligible For Payday Loan or Salary Loan?

To get this most reliable on the time financial help—

  • You need to be 18 years old or over
  • You must be in regular job
  • This facility is available on for registered UK residents
  • The salary should be paid directly to your UK bank account
  • You also need to have a valid debit card for salary account
  • You must have functional mobile phone
  • You must have valid and operational email address
  • You must not be signed to any debt management plan or individual voluntary arrangement
  • You must not be signed to any debtor under bankruptcy proceeding

How to Get the Best Payday Loan Offer: 

Before shopping around to get the best payday loan deal, you must decide:

  • How much amount you need to borrow
  • How much monthly installment you can pay without halting other regular payments
  • How quickly you can pay the entire debt back
  • How you would tackle the unexpected financial problem in planned repayment   

Which Is The Best Payday Loan Lender In The UK?

Naturally, everyone wants to deal with the best lender but which one is the best. Your personal experience decides the rating of a lender; still, you must compare the shortlisted 12 month payday loans lenders on following parameters:

  • History                                                         
  • Social media Reputation      
  • Offered interest rate and APR
  • Customer support model                    
  • Flexibility in approach                           
  • Authorization

 Concluding Note:


Payday loan should be your last choice when you are left with no other option. To make it better affordable, you need to be a disciplined borrower with command to minimize the monthly expenses to save more and payback the debt at the earliest.