Should I extend my loan?

wannabedebtfree_2

If the interest is front loaded then you won't have even started to touch the original loan in terms of payment yet, and even if its calculated monthly you have only paid off about £400 of the loan so far.

I would be cautious as this will incur another credit search, and the loan will actually reset - I found this years ago with my Egg loan, I had only paid 2 months, and needed some extra cash, it said on the website to ring to "top-up" the loan, so I did, and was told it would go through as a whole new application the balance of my existing loan plus the extra.....which I went ahead with, but I was only paying about 6.4%, so thats a massive difference.

Have you tried getting a cheaper loan?

Good Luck!

jamesd147_2

CLAPTON wrote: »

as you tell the story and if there are no other conditions or costs then it seems better than your current situation because as you say although you are shifting 4,200 of debt from 5.95% to 17.9% you are also shifting about 7500 of debt from 23.9% to 17.9%.
So unless there are any other conditions it is better than your current situation.

However, is there any way you can refinance the loan as 23.9% or even 17.9% is a pretty high rate.

I wouldn't be shifting £4200 to 17.9%, it'll only be £500, the rest will remain at 5.95%.

I really can't see how i can lose, I will be paying the same monthly payments over the same period of time.

jamesd147_2

RAS wrote: »

???

Settlement fee/penalty on exisiing loan plus new set of fees on new loan??

plus more onerous conditions?

Or fixed rate to variable?

I don't know any of this and will certainly check before I make a final decision.

I wouldn't be able to afford to settle at the moment anyway, I know with egg card you can transfer a balance from a loan, that is a possibility somewhere down the line but I only have 4000 available credit at the moment. I will look into a partial settlement, but I would imagine I would be heavily penolised for that.