Reducing monthly loan repayments

RG1982

Hi All,

I was wondering, is there anyway i could actually reduce my monthly payments on my loan and stretch it out over a longer period?

Has anyone had experience of doing this? If so what sort of procedure did you go through to have to do it, were any penalties incurred etc?

Thanks in advace!

Rafter

RG,

All depends on your credit rating, income and the sums involved.

Think about what you bought with the loan though and whether you really want to be paying that off over a longer period. If not, then work out how you can boost your income or cut your outgoings to make the current payments more comfortable.

R.

thriftymomma

I think you usually end up having to get a whole new loan.

RG1982

Thanks both for the replys.

I thought that i may either have to get a whole new loan or they would re-credit check me.

Theres not much i can do to cut outgoings to be honest. My CC is also Killing me I am paying £120/month interest on a 5k balance with MBNA. Maybe i need to apply for a balance trasfer CC.....?

Thanks for the info.

RG

thriftymomma

RG1982 wrote: »

Thanks both for the replys.

I thought that i may either have to get a whole new loan or they would re-credit check me.

Theres not much i can do to cut outgoings to be honest. My CC is also Killing me I am paying £120/month interest on a 5k balance with MBNA. Maybe i need to apply for a balance trasfer CC.....?

Thanks for the info.

RG

Defo sounds like you need a cheaper rate card. £120 is a heck of a lot of interest!
Good luck xx

ylesia

thriftymomma wrote: »

I think you usually end up having to get a whole new loan.

In my experience they like to make money of you like this! I had a personal loan with Nationwide fixed at 6.9% (ages ago), after a couple of years I repeatedly got mailshots about "topping up" my loan or changing the term - but if you read the small print then you are really getting a brand new loan at usually a much higher APR!

thriftymomma

ylesia wrote: »

In my experience they like to make money of you like this! I had a personal loan with Nationwide fixed at 6.9% (ages ago), after a couple of years I repeatedly got mailshots about "topping up" my loan or changing the term - but if you read the small print then you are really getting a brand new loan at usually a much higher APR!

Sounds about right!

Ilovejackbauer

Actually that's not right, loads of people that have loans with Nationwide have had top ups during the life of the loan. However, not sure whether thats an option now.

OP

Your option is either take out a new loan for the amount you still owe over a longer period.

or

Complete a SOM with loan people, if your disposable income shows that you can't afford the full repayment amount you may be able to get an arrangement with them. At Nationwide, if your loan amount was for eg 400 per month and your disposable income was 200, that amount would be divided into your balance and if the loan could be completed within seven years they would put you on an arrangement. However, it would only be set for six months at a time and then you would be required to call back for a chat where they would see if you could increase your payment to try and bring you back on track.

kaisersoze_2

Could you ask for a repayment holiday to give you some breathing space and try to get the amount on the CC reduced, my GF did this with EGG and got a 3 month break, then she could either pay off the loan over a longer period or up her repayments so it was cleared in the original timescale.