Extending a loan - advice please

[CharCharGabor]

DP and I have a loan with the bank for £1800 which we are paying off monthly. Never missed a payment, been paying it off for almost a year I think. This month we have no money and we want to extend the loan by £500. Will they make us pay more monthly or just extend the time period we are paying it off for? TIA

I suspect that they will want to look at the reasons as to why you are unable to pay this month, and also for what reason you need the £500.

If they are happy, then they can vary either the repayment or the time period or both.

All bills have been paid off this month including the loan. It's just money for food etc. that we need and it would also help us to clear overdraft. Do you think they'd let us just pay it off for longer then? Because we can't afford to pay more each month. Thanks for answering.

You need to approach the bank. It will depend on their Terms and Conditions as relate to your existing loan.

Thanks. We are going to the bank on Friday to see what they say. The t and c said that we could extend the loan after 3 months of paying it off so hopefully they will say yes. I hate asking for money though

As Ladymuck says the bank can either extend the term or increase the monthly payment. I don't know your circumstances, but borrowing £500 to help with food and normal living costs is not good, and to be honest the bank is unlikely to advance you more money as you can't really afford the loan you have. What happens in 2/3 months when you have used the £500 are you going to go back again? I suggest you bring with you a full income and expenditure statement (what you have coming in and going out) so the bank can work with you to see how it can help. It may be able to offer a repayment holiday up to 3 months -this costs you more in interest, but may be a temporary solution.