It’s never a good idea to be late on paying back a payday loan, but there are a number of things to keep in mind if it can’t be helped. By following these tips you will potentially save yourself a lot of money. Being even a single day late on paying back your loan can quickly escalate into a nightmare, so you will need to know how to keep the damage to a minimum. Being late on paying back your loan isn’t the end of the world, but you will need to be prepared for what is to come.

Ask the Lender for More Time

If you aren’t late on paying back your loan but expect to be, you should try asking the lender for more time to pay it off. A majority of these lenders are willing to work with those who can’t pay their loan back on time, but not all. The worst the lender can do is say no, so it’s definitely worth asking. You don’t want to simply ignore the debt if you cannot pay it back by the agreed upon date. The amount of additional time you get will depend on the lender. You won’t have forever to pay back your loan, but an extra week or two could help you immensely.

Tighten Your Belt (Financially Speaking)

When you are past due on your payday loan, you will need to tighten your belt and start saving all the money you can. If you usually go out to eat once or twice a week, don’t do it at all until you have the balance of your account cleared completely. There are tons of small ways that you can save money, and it’s important that you try as many of them as possible. Cut back on all of the non-essentials in your life so that you will be able to pay back your loan as soon as possible.

Cancel the Recurring Payment

You should also seriously think about getting in touch with your bank to cancel the recurring payment that enables your lender to take money out of your checking account. The best time to do this is the day before the repayment is scheduled, and you’ll need to contact your lender to let them know about this action you are taking. It is also a good idea to document the exact date and time that you told your bank to do this. If this wasn’t effective and the lender continues taking out money, you will want to call them up directly to complain. The bank should do something to resolve this problem, but it’s never guaranteed.

Choose a Repayment Plan

Most lenders will tell people who are late on paying back their quick loans to just “roll it over” for an extended period of time, but this will only lead to more fees and charges on your end. Instead you will want to think about working with the lender to come up with a repayment plan that works for you. This plan will enable you to pay off your loan without having to worry about all sorts of additional fees piling up.

Contact a Debt Adviser

A professional debt adviser can help you figure out how to deal with the payday loan that you cannot pay right now. There are all sorts of services that can be of assistance in this type of situation, so you will need to spend some time looking into them. You will need to make a point of letting your lender know that you are working with one of these professionals. It is important to keep the lender in the loop at all times, because otherwise things could take a very ugly turn very fast. A debt adviser will be able to review your options with you and help you select the right one.

Don’t Put up with Lender Abuse

Your lender should never harass you at work or talk to the people in your life about your debt even if you are late on paying back the loan. If the lender has started doing any of these things, you will need to make a formal complaint against them right away. This kind of behaviour should never be tolerated. Some people believe there is nothing they can do or that they deserve it, but this is not the case at all.

The Financial Ombudsman Service will provide you with a way to complain about an abusive or harassing payday loan lender. If this agency determines that you have been treated unfairly in any way by the lender, you could receive compensation. While most payday loan lenders don’t do these things, it does sometimes happen. You should never hesitate to make this sort of formal complaint if you find yourself in this type of situation.

You Cannot be Put in Jail

It is important to keep in mind that there are limits to what can happen to you if you don’t pay back your loan. While you cannot be put in jail, the lender can choose to take you to court to force payment. Some lenders make a lot of threats to get their money, and some will even lie about what could happen if you do not pay them immediately. The more you know about the reality of all this, the more calmly you can handle the situation.

Try Negotiating

Going to court over an unpaid loan is never an ideal option for either party involved, so you will always want to try negotiating first. The lender will most likely be open to discussing terms and setting up a repayment plan, because they want to get the money you owe them. If the lender is not open to negotiations at all, there isn’t a whole lot that you can do. Whatever you do though, make sure to stay calm. You never want to make any drastic decisions out of emotion, because it won’t end well.

When you need to borrow money for whatever reason, it is important to weigh your loan options so you can make the best possible decision. Payday loans have increased in popularity quite a bit over the years, and there are many reasons for this trend. Fewer and fewer people are even bothering to apply for personal loans because of how difficult they can be for the average person to get. Those who take enough time to get this information should be able to choose the borrowing option that will benefit them the most.

What Are Payday Loans?

These loans are given out to qualifying individuals as a sort of advance on their pay checks. These short-term loans must usually be repaid within a period of two weeks. You can only get one of these loans from a private lender.

Personal loans are given out by banks, and the repayment period depends on the amount that you borrow. Usually a personal loan is for a larger amount, so you will have more time to pay it back. Both of these types of loans will allow you to get the money you need, but there are many differences that you should be aware of.


Some people think that payday loans are inferior to personal loans just because private lenders give them out, but this is not the case. The truth is that there are lots of trustworthy private companies in the payday loan industry that you can rely on to help you out financially. It is a good idea to spend some time looking over your lender options though, as there are many of them to choose from.

Personal loans are given out by banks, which are notorious for making it difficult for the average person to get approved. There are many banks that you can get your loan from, but doing so is much more complicated and frustrating overall.

Requirements and Standards

These days a lot of people all across the United Kingdom are gravitating towards payday loans because they are very easy for most people to get.
Some of the more basic requirements needed to get a payday loan include:

  • Over 18 years of age
  • Current/active checking account
  • Adequate income
  • Legal UK citizen

The banks that give out personal loans tend to have much higher standards. Bad credit is not really a big problem if you are applying for payday loans, but you’d be hard pressed to get a personal loan with a low credit rating. In fact, it is nearly impossible to get an unsecured personal loan from a bank if you don’t have at least good credit.

You will quickly find that a lot of the private companies that give out payday loans don’t even run credit checks, so your low score shouldn’t stop you from getting approved. Millions of people all over the UK get turned down personal loans each year because their credit wasn’t good enough. The fact is that the requirements for getting payday loans are much more lax than with a bank, so you will need to keep that in mind.

Time it Takes to Receive Funds

It is not unusual for someone who gets a personal loan to wait 2-3 weeks before they finally receive the money they need. People who apply and get the green light for payday loans can get their funds within less than a full business day. If you find yourself in a situation where you need money fast, you should definitely avoid getting a personal loan altogether.

Loans that are given out by banks tend to take a very long time to go through, which is just another reason that more people are going through private lenders for the money they need. Most people get funds from payday loans within a matter of hours after submitting an application online, which is great if you in an emergency situation financially.

Process for Getting the Loan

While the basic process for getting a personal and payday loans is basically the same, there are still some differences that matter quite a bit. If you want to get a payday loan, all you need to do is simply go online, find a lender, and fill out an application on their website. Many banks today still require you to come down in person to fill out a paper application, which can be frustrating.

If you want to save yourself quite a bit of time and effort, it is a good idea to look into payday loans because of how easy and convenient the whole process is. One thing that a lot of people don’t like about going through a bank to get a loan is that they demand to know what applicants want the money for. Those who get a payday loan never have to answer any such question, so it’s entirely up to you how to spend the money you borrow.

Repaying Your Loan

Payday loans are typically repaid over a much shorter period of time than personal loans, but it’s only because the borrowing limit is usually less. When you don’t have a lot of time to pay back your loan, you will actually increase your chances of paying it back on time. The longer the loan term is, the more interest you will end up paying. A lot of people think that the more time you have to pay off a loan the better, but this isn’t always the case.

Which Type of Loan is Right for You?

When you are trying to decide between a personal loan and payday loan, you will need to take a close look at your own situation. If you need money right away and cannot afford to go through a lengthy and involved process, a cash advance is probably the way to go. If you do not have very good credit, payday loans are definitely the better option.

Although most people think of payday loans as being short-term (around 2 weeks), there are other options available. You will find that some private lenders give out payday loans for larger amounts, so you will therefore have more time to pay back the money. If you need to get money right away, you will first need to take a close look at these options. There are quite a few benefits associated with getting a loan with a longer term. When you make an effort to get this information, you can choose the right option to match your needs perfectly.

Why Take Out a 12-Month Payment Loan?

Taking out a 12-month-long payday loan will give you plenty of time to pay back the money you have borrowed. While it is true that you will also pay more interest, it can be well worth it if it means that you aren’t late paying back the money you borrow. You will have a full year to pay off your debt, but you’ll be required to make monthly payments. There is going to be a minimum amount that you will have to pay towards your loan with each payment. Most private lenders will let you pay back your loan early without any penalty fees.

Finding a Lender

Since not all private lenders give out 12-month payday loans, you will need to look for one that does. It is also imperative that you search for a lender that is highly reputable and trustworthy. You absolutely do not want to borrow money from a shady lender, as you will almost certainly end up paying all sorts of hidden fees. The best way to reduce the total amount of money that you have to pay back is to select a lender that is 100% legitimate and reputable. The internet can help you with doing research into these lenders before choosing one in particular.

Assess Your Financial Situation

Even those who need money badly will need to assess their financial situation before applying for a 12-month payday loan. You should first decide whether or not you really need to borrow this money. If you have something very important that you need money for immediately, this type of loan can help you tremendously. Those who take the time to do this will be able to make the right decision.

Short-Term vs. Instalment Payday Loans

The standard short-term payday loan will require you to clear your balance within a couple of weeks, or when you receive your next pay check. Longer-term payday loans will give you up to a full year to pay back the money. While a short-term loan is nice because there is minimal interest, you won’t be able to borrow nearly as much. If you happen to need a lot of money for a sudden and crucial expense, a 12-month term loan could be the best option.

Basic Requirements for Approval

You must meet some basic requirements in order to get approved by a private lender for a 12-month payday loan. If you are not over the age of 18 with an active checking account and verifiable form of income, you will not get approved. Also, the standards for longer-term payday loans are sometimes a bit tighter. A 2-week payday loan term doesn’t require good credit, but a 12-month term might. It is highly recommended that you take a look at your credit score so you know exactly where you stand. A low credit score doesn’t necessarily mean you will get rejected for sure, but it’s still something to keep in mind.

Regulation of Payday Loans

If you are a little unsure about getting a 12-month payday loan, you will need to keep in mind that this industry does have numerous regulations in place. These regulations protect borrowers, but it’s still important that you do enough research to protect yourself. Despite what a lot of people think about these loans, they aren’t all that risky. Payday loans are not regulated in the same way as bank loans, but that doesn’t mean you shouldn’t apply for one.

Applying for 12-Month Payday Loan

You will be happy to know that applying for a 12-month payday loan isn’t very difficult or complicated at all, and it can be done completely online. As long as you have a computer and internet connection, you can fill out and submit the necessary form to get started with this process. Once you have submitted the application, you should get a response from the lender within a few hours. A lot of people in the UK love these loans because the entire process goes so quickly, which can be hugely beneficial if you need money fast for whatever reason.

What Happens if You Are Late Paying Back the Loan?

If you are not able to pay back the loan you take out by the agreed upon date, you will be facing some hefty additional fees. Those who are even one day late with paying back this kind of loan can find themselves in big trouble financially. If you are worried about forgetting to pay your loan back on the appropriate day, you can allow the lender to automatically take the money from your checking account. This will help you avoid spending a lot of extra money on your loan.

Final Thoughts

A 12-month payday loan can be an excellent option for many people, but you should spend some time thinking about it carefully before making a decision. A longer term for your loan means you will be able to borrow more than you normally would, and you will have a reasonable amount of time to pay it back. A lot of private lenders have started offering these loans with 3 to 12 month terms, so you should therefore explore the options you have. If you need a few thousand dollars, you will definitely want a loan term of at least a few months. Fill out an application today so you can get your money as soon as possible.