Extending Current Loan

Gaz83

Gaz83 wrote: »

OP, have you missed any payments on your current loan?

holyfire82 wrote: »

no i havent missed any payments.

Have you considered then that perhaps they won't want to help you refinance?

If you are happily paying a higher amount, why would they want to stop that to have you pay a lower amount?

Their business is to make money, not to help you save it.

Dobbibill

Hi holyfire - welcome to the forum.

Debt consolidation, which is what you are aiming to do, will be a risk to a lender and they will balance that risk with their APR if you are accepted.

Going back to borrow more to try and get a lower rate with the limited history you have appears as though you are on a debt spiral.

You say your payments are £80 but could rise to approx £130 and not change things for you then follow that with using your overdraft for a few days a couple of times which looks as though you cannot live within your means. Would this change cause you to use your overdraft by a further £50 a month or more often.
This is not a pop, just an observation - which is how a lender is likely to view the situation. With all the emotion, good will and explanations taken out of the equation you are a paper based application for lending.

Have you considered visiting the DFW board and posting a SOA - the good people there may be able to suggest alternative ways to pay down the debt quicker which would result in paying less interest overall.

All the best.

holyfire82

I think maybe my posts have inferred the wrong jist of my question and situation.

I got the loan, as i had to pay/contribute towards two funerals and the various dealings surrounding these. The £3000 figure was supposed to be enough for this with also some left over for various things. In the end the money left over after the funerals wasn't as much as i thought. I realised at the time of getting the loan i should have gotten more - as it would have left me with more of the loan after paying the various expenses for the funerals.

This is why I am wanting to change my loan. The fact the APR would be lower more than likely is an added benefit too.

Again, although the loan is debt as such - there is no problem what so ever in me paying my repayments back every month. So talk of 'paying back the debt' etc isn't needed. I am not in any financial issues or worry, and could live without the loan quite easily - but there are things i would like to do over the next 12/18months and the money would help - that's all.

Obv I understand it can come across as confusing with the overdraft - although being overdrawn a little once or twice doesnt suggest not being able to live within my means - being over my overdraft limit would be, not the odd £50 when my limit is £1350 - although i know its not ideal - and has only happened due to the extra funds and payments for the previously mentioned expenses and funeral costs.

thanks for replying.

(also - i have no idea what SOA means haha)

Dobbibill

holyfire82 wrote: »

(also - i have no idea what SOA means haha)

An SOA is a statement of affairs, income and expenditure.

http://www.stoozing.com/calculator/soa.php

If you don't need the loan and you can live without it then maybe you could overpay on the loan instead meaning it won't last four years and could be gone alot sooner - thus paying less interest overall.

The SOA will give posters a picture of where cut backs could be made to throw more at the loan sooner and get rid.

I haven't quoted all of your post as you have justified why you want the loan which is not asked on a loan application it would simply be 'holiday/debt consolidation' for example, so was trying to help you see it from a lenders view and why the APR may not come down as much as you anticipate.

holyfire82

Yea I know the whole reasons wont be considered in my application.

basically i guess it comes down to this "i now want a larger loan for the extra money", and "i am fine with paying more over the 4 years"

that's the crux of it for me - whether the bank would let me is the question isn't it?

i'd like to think they would, being a long standing customer with a good history of paying direct debits etc. and someone with a long standing job and paying off overdraft the few times its happened,

i guess i will ahve to wait a few weeks and ask the bank - i know no one here can give me a def answer.