Mr. Ed Sibley:

Term extensions are relatively prominent although not quite as prominent as capitalisations or splits. The danger of term extensions is that it puts the borrower in a circumstance where the overall cost of credit is going up because he or she is paying interest for longer. Another question that arises is how a borrower will pay if his or her term of repayment pushes into retirement when his or her financial circumstances have deteriorated. Term extensions are a valid and viable solution but need to be tailored to the individual borrower's circumstances.