Even if you are a good money manager, when you
are living from one pay check to another, there would come a point when you
will find yourself short of cash. If your rainy day savings have already been
drained, what solutions can you consider if your next pay day is still more
than a week away?
Fortunately, you can always rely on 12
Month Loan as a viable solution. This is a reasonable loan to take on
if you find yourself in a situation when pay day is almost near, but you cannot
get your hands on your funds yet. Whether it's for medical expenses, travel
costs, a death or sickness in the family or any other financial emergency that
you need to address, this short-term loan might just be the answer that you are
looking for.
12 Month Payday Loans: How They Work
But how exactly do 12
Month Payday Loans work? When you go online, you will see dozens of
companies offering short-term lending. The term can range from one month to six
months, depending on the amount that you will borrow. However, let us focus our
attention on the very short term cash advance.
For this, you will be borrowing money from a
pay day loan company which usually involves a small amount. As the name
implies, a payday loan is a cash advance usually paid on the date that you will
receive your next pay check. The period by which the money should be repaid is
anywhere from a few days to 45 days.
Once the date that the loan is supposed to be
paid off arrives, there is usually an automatic debit arrangement wherein the
lending company will deduct the amount from your checking (current) account.
The good thing about 12 month payday loans is
that you will only be in debt for a short time, you do not have to undergo
credit checking, and you can usually receive the funds that are borrowing
within 24 to 48 business hours.
Important Reminders when Applying for 12 Month
Payday Loans
Although cash advance loans seem to be a
quick, painless solution for one of those financial emergencies, there are a
few things that you need to keep in mind:
Make sure that you have enough funds on your
next pay day to pay off the full loan amount.
Don't fall into the debt trap of agreeing to
have the loan rolled over for another period. If you do this, the interest will
pile up and you might end up paying more in interest than the amount that you
actually borrowed.
Make sure that you are dealing with a
reputable lender. Check out all the available options in your area or online,
compare the rates that they charge and study the terms and conditions. Narrow
down your choices to two or three cash advance companies, get feedback about
how reliable they are, and make your decision from there.
All in all, 12 month payday loans are a great
solution if you are looking to bridge the cash gap that you have in between pay
checks. However, you need to make sure that you are dealing with a reputable
payday loan company and that you have enough funds to pay off the entire loan
amount when the due date arrives.
