10 tips to negotiate with your lenders
Now a day, among all the normal day to day activities, lending money has become very familiar. People take money from others for their own personal interests. If we also consider a business, many people take money from specific business organizations or banks to start their business. Now if you are taking money from someone, you must have perfect negotiation skills with your lenders and you should also know about the terms and conditions provided by the lenders. Otherwise, you might fall into a dangerous situation in the future. Here are some tips on how you should negotiate with your lenders-
- First of all, you have to know about your own financial situation. Suppose you have agreed to a deal with a lender about a certain amount of payment. But, after some time, you get to know that you have no way of paying that much account. So, knowing your own capability of timely payment is a must.
- Take your time to negotiate with someone or any organization. Do not agree with the first offer they are offering. Always try to settle and find out how much farther your lender is willing to go for negotiating and if possible take days to settle for an agreement.
- When it comes to collecting debt, the person sent to negotiate with you is a professional. They will try to make you nervous or intimidate you so that you become panicked and make a wrong decision. Don’t become nervous and try to consult with a lawyer for any kind of inquiry.
- Write down everything going on for a negotiation. You must have legal papers and hard copies of all the documents related to the negotiation. There are different kinds of lenders. Some will lend you money by signing a bond with the mortgage of your home, or your bank accounts. Some will give you a loan without these; a non-secured way. Always keep those documents where you signed your agreement in a safe place.
- About a home loan or mortgage loan, you should always have proper knowledge about your home and land. And also you should have all legal papers of your mortgage. Normally there is a huge number of programs regarding home loans and their modifications. You should follow those programs and their procedures to make yourself comfortable and reasonable with your home and mortgage loan.
- One of the major problems for you might be the interest cost of the loan you will be taking. Sometimes people don’t find the proper institution or lender to get their loans with a reasonable rate of interest. Eventually, they move to the organizations who are lending money for a higher rate of interest. Now you can either wait for some time so that you can find a better offer or you can go to the institutions which have a better offer with some additional fees and charges. To be noted, you must learn and study the proper documentation of those offers which are given by the lending institution.
- Lenders naturally like to get their money as soon as possible. So you should always try to pay the money timely. Note that if you have cash money, pay as much as you can. Because if you pay more money at a time, then lenders will be happy as well as you can be free of your debt sooner.
- Negotiation of student loans is very hard to pull off because they cannot be discharged in bankruptcy. You should keep tabs on different types of government programs where they offer lower rates of monthly payments. Normally, most of the student loans come in the form of a financial aid. Some colleges try to make those student loans to a minimum amount so that students can repay these loans in the form of working in the college for extra credits or studying. You can also find there are many colleges who provide certain scholarships depending on your result. You can also contact them to get a good financial aid.
- If you want to buy a car, a motorcycle or any other electrical appliance, it is better to take loans from small banks. There are also many companies who lend money for car, bikes and various home items. You should contact them and find a reasonable one. Negotiating with them is very easy and time-saving. Because there will be clear-cut instructions about when to pay the loan and process of payment. Always keep tabs on your monthly calendar to pay the loan timely. If you can’t pay the loan on time, they always inform the supervisor of the certain lending company so that they can provide proper instruction or modification of the contract you agreed with them. You can also get an extension for paying the monthly charge. In that case, you have to pay a certain amount of a flat interest per month (say 1%) of the normal amount you were paying per month and your per month payment will also be reduced.
- If you took money from local people, someone you know, you should be specific about your money returning date and how you will be paying those money. Keep the confidential documents safe with you and keep a good relationship with those people from whom you have taken the money. If for some reason you can’t pay the money in time, talk and negotiate with them with the proper reason of not paying the money. Remember one thing always, be specific with your reasons always and keep the proof of those reasons.
Fair to say, lenders are very essential part of our life in the present world, but they can also be a threat and a danger to our lives if we don’t possess the proper negotiation skills or information. Your own money is very valuable to you because this money is earned by you. Don’t waste your money on silly matters or rash decisions. Try to be brave and strategic with lenders to get the most out of them and have a happy life.