Has anyone extended a pre-existing loan?

kizdude

Hello everybody,

I was just wondering if anyone has ever extended a pre-existing loan?
I currently have a Professional studies loan with Barclays for £6000. Over the last 3 years, in addition to this, I have accrued debts on credit cards and from friends and live off my overdraft (£7,000). I also owe my mum £6000 and I would really love to pay her back. She's an absolute angel.

All in all my combined debts add up to around £19,000. I feel so ashamed and such a failure!

On the positive side I have a GOOD credit score as I never miss a payment. I am now however beginning to feel the pinch and am aware that I am paying far too much in interest. I want to be able to breathe again.

I want to ask Barclays if I can extend my loan and increase it to maybe £20,000 to consolidate. My current outgoings are £430 on debt repayment. If I consolidate it will be more along the lines of £340. And I wont owe my mum, my friends or anyone else any money anymore. I will have just 1 debt to Barclays (wierd warped world; sounds like bliss).:o

So these are my questions;
1. Has anyone extended their pre-existing loan with Barclays (or anyone) and what was it like?
2. How would a lender respond if I told them £6000 was to pay back my mum?
3. In the news they're saying that Banks are declining lots of loan applications; does this mean that they're going slam the door in my face? i.e. Has Barclays got stricter?

Thank you for taking the time to read my little story. Cheers

Ama

I can answer the first part of your question which is I have extended a loan with Egg before. They gave me a new loan and used part of the new loan to pay off the oustanding amount of the existing loan as demonstrated below;

Oustanding amount £2500
New loan £5500
Money paid to me £3000

Hope this makes sense.

The only down side to this is that the old interest rate and terms of the loan may not apply to the new loan.

kizdude

Thank you for that.

Much appreciated. I agree, this is a really good website.

Cheers