whats my options?

Bahney

i am in a bit of a predicament, i hoped someone on here would be able to help me.

i have a current loan with theAA (they were the cheapest at the time) i currently pay back £222 per month

this was ok when i was living at my parents house and i had a disposable income

however i have just got a mortgage for my own home (in jan this year) and my mortgage repayments are £550 fixed for three years

i took out the mortgage on the assumption that on my 3 year carloan i would be able to squash out to over 5years and cut the repayments in half (this was all confirmed over the phone prior to me taking out my mortgage)

my settlement figure for the loan is £5107

apart from this and about £100 i have on a visa i have no other outstanding debts or finance no store cards etc, infact until i got a mortgage my credit rateing must have been superb (never missed a payment etc)

now the aa are telling me due to poor credit rateings i can only get an apr of 11.7%apr!!!! what!!!

i refuse to do this, they are punishing me for taking out a mortgage?? this is insane!

but if i dont half the loan repayment fee i have worked out that in 2 months time i will have to go into my overdraft and after that i may be on a slippery slope that i dont want to be on

so what are my options? can anyone help me? i know my loan settlement figure is pretty small in comparison to other peoples debts but to me it just feels like a huge milestone hanging around my neck that i need to get rid of i am living on my own/mortgage on my own and pay all my bills on my own so the extra £100 that i would get from re jiging my loan would be a godsend to me.

doitmyself

I think your logic is a little twisted in thinking (the AA) are punishing you for a choice you made!

However, and totally guessing here (also no Einstein) but is this somewhere close-ish:
Orig Loan = £7,500 at 5.9% over 3 yrs = £220 p/m. That same loan (amt/int rate) over 5 years = £132 p/m. Tot interest = £600.
Loan = £7,500 at 11.9% over 5 yrs = 140 p/m. Tot interest = £900.

You must have some kind of a decent income in order to get a mortgage and with no other commitments you should be able to afford £650-£750 p/m ok.

The AA have seemingly agreed to extend your loan to 5 years thus reducing the repayment by c.£80 which you now apparently need, but only by you paying an extra £300 over that 5 years. That's ok isn't it?

Money's becoming harder and more expensive to get hold of right now, not cheaper, and making a load of new apps all over the place to save a few pennies wont do you any favours re. the credit thing.
There's a case for going with the 11.9% here IMO, but surely the best thing is to stick with the current 3-year deal?