What is a format for a personal loan?

Personal Loan query - What is an internal loan?

• I have a £5000 bank loan which has 3 years left on it. I have recently finished work and am going to struggle making the repayments. I dont have insurance on it. I contacted Natwest to ask them about extending the loan repayment plan by 1 year to reduce the repayments.... Apparantly my credit rating is not good enough for this!! However they have offered me an option for an internal loan they refer to as an IRL. They tell me that this is not a debt management plan, they will just take out a new loan to cover the old one.. It will also cover my existing overdraft but then I am restricted to a standard current account for the next 6 months... They told me loads of stuff that was really confusing and sounds a little bit dodgy! Has anyone heard of this???

• Answer:

  Most likley they intend to secure the new loan against your house .. this means if you default they can repossess .. It is also likley they will set a higher rate of interest and /or extend the loan over a longer period .. Just ignore their fancy names .. you can be sure that anything they are offering will end up costing you more in the long term ..