12 Month Loan

£50 - £2,500 paid out by 10:46am

How much would you like?

£

Representative 305.9% APR

Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
*MoneyWorld does not perform a credit check but the lenders we're partnered with will perform what is known as a "soft search" to determine your eligibility. Should you choose to accept the loan terms you're offered, a full credit check will be carried out.

Instant Repay Payday Loan vs 12 Month Loan

There are many different types of short term loans to choose from these days which means that it is worth checking through them before you take one out. As the terms and conditions can vary, such as having a 12 month loan compared with a loan that you repay in one lump sum. This can make a big difference to you and it is good to think about the differences between different types of payday loans so that you can consider which will be the best one for you. Therefore when you choose between a 12 month loan and an instant repay payday loan, you will know what the consequences will be.

How much would you like?

£
Apply Now

Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.

Total amount repaid

If you want to pay the least amount possible in fees for your loan then you will need to compare the different options available and calculate how much you will pay in total. This is actually more straightforward than it might sound. You will find that when you go to a short term lenders website, they will be able to put in details of how much you want to borrow and how long for and they will let you know how much you will repay in full. From this figure you can take away the amount that you have borrowed and this will allow you to see how much in total you are paying in fees.

For a monthly repayment, you may only get how much will be due each month. In this case you will have to multiply that figure by twelve to see how much is paid back in total and then take out the sum that you borrowed again, to work out the fees.

You are likely to find that the longer you have the loan; the greater the cost will be. This is because you are paying for the borrowing and this cost will add up each month.

Size of repayments

Obviously, if you just pay back one lump sum, then you will pay back a much larger amount in one go compared with spreading the payments over the year. It can be really great to get everything paid back in one go as it will be cheaper. However, it is important to think about how you will manage when you have paid back that lump sum. You will still have to pay all of your regular bills and things even though you have repaid this loan. This could mean that you struggle to make ends meet, particularly if you took out the loan because you were struggling already.

If you pay back over a longer period then you will pay back a smaller amount each month. This will enable you to more easily afford each payment and mean that you will be able to makes ends meet each month more easily. This is not an excuse not to budget though, you will still need to make sure that you can manage after making each payment.

There is a risk, that if you just pay back in one lump sum, that you may not have enough money available to cover that one payment as it will be relatively large compared with spreading the cost across a year. This could mean that you end up with having to pay late repayment fees on top of the other fees and interest.

Length of loan

Obviously if you pay a loan back in a lump sum then you will get rid of it very quickly. This can be a fantastic feeling, knowing that you will have to loan for less than a month. Some people find that stress of a loan really can get them down. It can mean that they are much more worried all of the time and if the loan lasts a year this can give then a year of worry, compared with just a few weeks if they pay it off all at once.

What can MoneyWorld.co.uk offer you?

Why Use Us?
What is the max amount?
Up to £2,500
No hidden charges
What's the approval rate?
95%
High approval
Bad credit accepted?
Yes
All welcome
Are transfers same day?
Yes
24/7/365 Service
Do I pay back in instalments?
Your choice
Easy repayments

Conclusion

It can be quite a complex issue, trying to decide what type of loan to take out. You will know how well you will cope with a loan, better than anyone, both with regards to your finances and your mental attitude towards them.

Is a 12 Month Loan too Long a Term to Consider?

When we are looking for a payday loan we will often think that they will be for very short period of time. Often we have to pay them back within a few weeks and therefore the loan disappears very quickly. However, there are now new short term loans where you can repay in instalments and one of the longest of these is a 12 month loan.

It is worth thinking hard about taking one of these as there are pros and cons. For example you might that that a 12 month loan will just last too long, but the smaller repayments may really help you to cope better.

How much would you like?

£
Apply Now

Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.

Can I cope with a 12 month loan?

It is worth thinking about whether you will be happy having a loan for a whole year. This not that long compared to some loans such as mortgages and student loans, which last for decades but if you have not had a loan before or worry a lot about making repayments, then it could be hard for you.

You know what your attitude is like towards loans. You know if you will find the situation stressful or will be able to cope with it. It is not just whether you will cope with the stress of the loan though that is important but also whether you will be able to cope with making those repayments every month.

To be able to make those repayments you will need to have a good enough income and not spend too much of it so that there is enough left each month. It is worth taking a look at you previous bank statements so that you can assess your financial situation and see whether you will have enough. Make sure that you contact your potential lender and find out exactly how much each months repayment will be so that you can do an accurate check on it. It is so important to be confident that you will be able to manage it.

It is wise to think about your job security and whether you think that you will have the same income for the whole year. Obviously if it goes up this will not be a problem, but ensure that you are confident that it will not go down. You will also be wise to think about what options you might have should you lose your job. Sadly, however confident we are in our employers, there is no guarantee of a secure job these days and so you always need to be prepared for the worst even if you really feel that your job is safe. Think about whether there are other places that you could work in order to continue getting a similar income.

How will smaller repayments advantage me?

Although it may be the case that paying over a longer term could cost you more money, there are advantages to repaying this way. If you just have one large or several fairly large repayments you will pay less in total and the loan will be gone pretty quickly. However, by paying smaller amounts, it is far easier to manage those repayments. Hopefully it will make it a lot easier for you to repay as you will not have to find so much money each month. You will also have more money left to spend for the rest of the month that means that you will be less likely to have trouble with making ends meet. It can be less stressful knowing that you have 12 manageable repayments to make than if you have a few really large ones.

What can MoneyWorld.co.uk offer you?

Why Use Us?
What is the max amount?
Up to £2,500
No hidden charges
What's the approval rate?
95%
High approval
Bad credit accepted?
Yes
All welcome
Are transfers same day?
Yes
24/7/365 Service
Do I pay back in instalments?
Your choice
Easy repayments

Summary

You know whether a long term loan will suit you better than a short one. However, if you do not have that much money available each month once your bills are paid, then it would make sense for you to make smaller repayments. If you are confident that you could cover a large repayment and that you would be able to manage after doing so, then perhaps a shorter loan term would suit you better. There is risk with a longer loan term, if you lose your job before you have paid off the loan then you could get into trouble but you will need to access that risk and decide whether you think that it is worth taking.