Tesco loan - extending agreement, any experience?

talisker78

Hello,

I've been a recent regular on the DFW forum, but I'm 'extending' out looking for some advice.

I'm working hard to try and reduce my ridiculous debt, all without going down the DMP route if at all possible.

I've got a ten year £25,000 loan with Tesco. I'm 3 years into it and paid off all the interest and i'm now into the capital. The APR is 5.8%. I pay £283.97 a month.

I need to reduce my payment so i can push some extra cash toward my other debts. Has anyone any experience with Tesco loans? I've a good history with them so far (no missed payments) would they consider a 're-finance', or possible extension to the loan on a temporary basis to allow me to reduce my payments?

Has anyne any experience of asking for this from any other loans? Have you been successful?

I understand it will extend the period of the loan, but its a risk I'm happy to take to try and knock off my other debts.

Any suggestion anone??!

Thank you

CLAPTON

The interest on your loan isn't paid off first...

The way it works is that every month you pay the interest for that month
i.e. capital remaining x 5.8%/12 and some of the capital
so after 3 years you have paid about 6,000 off the capital.

I'm not sure if that helps or not I'm afraid.
maybe tesco will give you an additional loan of 6k but in these times that may not be the case.
Have you tried to get 0% BT cards or low life of balance CCs to help reduce the APRs on the CCs?

jonesMUFCforever

The rate you have got is the best you are going to get - the term of 10 years is the best you are going to get on an unsecured loan.
Tesco have tightened up on their lending criteria and there is no way they will lend you any more or extend the loan period.

Sorry.

Ways to get out of your predicament - do you own a property - is there equity in it? Any chance of re-mortgage.

If not you may well have to go down the DMP route but obviously get proper advice from CAB or National Debt helpline first.