Did you know? Letters don’t just disappear so a letter or phone call from the bank arrived? It is worth addressing them immediately and not rejecting. It’s not pleasant, but rejection won’t solve the problem or make the letter go away. An immediate response can help reach immediate settlements and mutually beneficial solutions.
Take a breath
Positive thinking and a relaxed atmosphere are a necessity. Try to see the bank as a partner and not an enemy. The interest in settling the debt is shared by the bank and the debtors, so it is worth maintaining a positive atmosphere. And one more thing: remember that the banker may work at a bank, but he is first and foremost a human being.
When scheduling an appointment at the bank, it is necessary to check in advance with whom it is worthwhile and necessary to meet (department manager, branch manager). There is no point in discussing things with an official who is not authorized to approve certain recovery plans. Have you met with an unqualified official? Not too bad. Remember that you can ask him to contact a higher level in order to try to improve the terms of the arrangement offered to you. In any case, a pre-arranged face-to-face meeting is preferable to a phone call.
Usually, there is a gap between the family’s expectations and what the bank offers when it comes to settling the debts. In order to bridge the gap, it is necessary to understand in depth what the possible solutions are and what the conditions are: interest, duration of repayment, whether the family meets the criteria for receiving the arrangement offered by the bank, and so on. In this way, it will be possible to bridge the gap between the family’s expectations of the bank and the bank’s ability to be flexible.
Most important: Do your homework
- In order to demonstrate your seriousness to repay loans, close debts and balance the account, present the banker with the real repayment amount (link to calculate repayment capacity) that you can meet. Don’t commit to an amount you can’t refund. Show the banker proof of improvement in your situation and express willingness to meet obligations.
- Negotiate: Check the terms offered by other banks (commission, interest, etc.). Ask to compare or improve the terms you get at your bank. Understand how to lower interest rates: Interest rates are a function of risk. The more you can prove to the banker that the family’s level of financial risk has decreased and the more calculated and responsible the financial conduct is, the greater the chance of obtaining a loan with better terms and at a lower interest rate. Negotiate the interest rate. The bank’s goal is for you to remain its customers, so when the family comes up with data on interest rates at competing banks, there is a basis for negotiations.
- Print out your income and expenses and compile your list of debts. Compile the list of various savings and provident funds, including their opening dates, and how much you will lose if you cash out before the end of the deadline.
- Come up with solutions when you need it. If the bank did not receive the solutions you sought to implement, you should come up with safe alternatives and alternatives. The alternatives can be good evenings, the pawn of the house or car, etc. Do not offer all the alternatives at once, use them wisely and present the alternative that is most convenient for you first.
In conclusion: the bank is not an enemy, it is a business. And you’re the customer. Prepare well for a meeting with the bank and make the best of it as a customer.