help,advice required,PLEASE.

redger

Hi all,I was hoping someone could point me in the right direction,
I have a loan taken out over 2 years(13months left??)Iam finding the repayments a little difficult.
The rate itself is only 5.6%.
What I was thinking of doing was phoning the lender(moneybackbank) an asking if it could be extended over a slightly longer period.
Is that feesible,adviseable??Will there be an extra charge for that??
Any advice greatfully accepted.

Many thanks,Ger.

enjoyincubus

A friend told me he did it with Halifax a couple of months back, so I am presuming most lenders will let you do it.

The lender gets to make more interest money off you (because of the longer period), also it stops you from going into arrears and saves them having to go through the whole debt collection process. I can't see why a lender would say no really!

From my own personal opinion I would definitely do this if I was having problems with my payments. I would rather pay off the debt a year later than pay late payment charges, higher interest, default notices etc.

However I don't know if they charge for this facility (probably not), I am sure someone else out there does though! They may charge two months interest as an early redemption of the loan. I believe that some lenders pay off your existing loan and then set you up with another one on the new terms and payment plan.

redger

enjoyincubus wrote:

A friend told me he did it with Halifax a couple of months back, so I am presuming most lenders will let you do it.

The lender gets to make more interest money off you (because of the longer period), also it stops you from going into arrears and saves them having to go through the whole debt collection process. I can't see why a lender would say no really!

From my own personal opinion I would definitely do this if I was having problems with my payments. I would rather pay off the debt a year later than pay late payment charges, higher interest, default notices etc.

However I don't know if they charge for this facility (probably not), I am sure someone else out there does though! They may charge two months interest as an early redemption of the loan. I believe that some lenders pay off your existing loan and then set you up with another one on the new terms and payment plan.

Cheers for the info mate,will give them bell,thanks again.

crossleydd42

Agreed, and I think the lender would be happier for you to do this now than get into difficulties later because you did nothing now.

redger

crossleydd42 wrote:

Agreed, and I think the lender would be happier for you to do this now than get into difficulties later because you did nothing now.

Cheers mate,it's not so much the not paying it,(always make sure it's paid),its having nothing left after paying it is the problem.Thanks again.