At times of larger projects, many people turn to bank loans to raise money. However, when the person can not control the budget, a series of disorders arises and, consequently, there is a need to negotiate debts with the bank.
Loans often appear as a chance to get money in a quick and even easy way for large projects such as setting up your own business, renovating the home, taking a trip, among others.
Banks are the most sought after institutions because, most of the time, the customer already has a relationship with them through checking accounts or applications. It is possible until the creditor offers this credit without being sought by the account holder.
But regardless of the reason the loan was made, it needs to be taken away. So, check out the following 10 steps of how to negotiate debts with the bank.
10 steps to negotiate bank debts
A prime requirement for anyone who wants to quit this problem is a good dose of patience. Hardly, a bank accepts the first proposal sent by a client. So do not give up right away and always have a plan B, in case A fails.
Know the 10 steps to negotiate debts with your bank.
1 – Make an analysis of the contract
If you still have the agreement entered into at the time of the loan, take the time to read it quietly, but very carefully. Take the opportunity to check if there are any irregularities in it, such as charging for abusive interest, for example.
If you identify any problem, consult a consumer protection agency or even the Central Bank and report it.
Knowing that there is an irregularity can also be a way of reaching an agreement with the bank, especially with regard to offering better terms to pay off the debt.
This is a good tip for negotiations involving high values, such as financing. It is not uncommon for some fees to be charged irregularly when signing the contract.
Also check how much is missing for the total debt closure. Review everything as carefully as possible. If you feel the need of a specialized professional, do not hesitate to rely on it.
2 – Check the amount that can be paid
Make a very detailed calculation of your debt before submitting the proposal.
Be realistic and check your current conditions. In some situations, the anxiety of taking out the debt sooner, especially when this is necessary for the accomplishment of another objective, may make the final proposal impossible to pay at that moment.
It is not difficult to come up with a value to present to the bank and negotiate your debt. Consider your monthly net income, discounting taxes and benefits, and also set aside money for basic expenses like water, electricity and gas, as well as clothing and food.
With this number in hand, think about all the expenses that can be avoided and that are considered superfluous. This final balance can be taken to the bank at the time of debt negotiation.
If you have extra income, such as some supplementary work, or some money you will receive at some point, such as the 13th salary, also take into account that the value to be negotiated with the institution may be higher because of this.
3 – Plan the first contact
Choose the right time to look for the bank and present your proposal. Opt for a quieter day, in which you have some free time, so that everything is done in the most peaceful and conscious way possible.
Some banks allow you to do everything online, with the insertion of the amount reserved for the entry and the total payment term.
However, many professionals in the area believe that the client can achieve good conditions when negotiating debts with the bank personally, because the solution found is personalized. Already the online mode traces the average profile of the consumer and everything is done in an impersonal and uniform way.
You can also close a deal over the phone. In this case, save any attendance record, such as a number. If it is in person, require the record of the negotiation in writing with signature of witnesses.
4 – Consider debt transfer
If your agency shows some resistance to accepting the value and conditions you have to offer, check the possibility of transferring the debt to another institution because you may even be able to find better payment conditions and lower interest rates.
And that’s not all. When considering debt portability, the lender bank may be more open to a negotiation. When pressed, it tends to offer similar or even more advantageous conditions than the competitor.
You can only probe this possibility before your first visit to your agency. If the debt negotiation with the bank does not evolve, try to achieve this.
Therefore, keep in mind the conditions offered and the possibility of transferring the debt without the need to open a checking account.
5 – Participate actively in the negotiation
Do not accept everything that the bank offers, especially when you realize that there are no conditions to fulfill the commitments. Try to do what you can to get a better deal.
In this scenario, plot a profile of your debt. If it is recent, the chances of getting a reduction in the total amount are minimal because the customer, when closing the contract, knew the conditions. Complaining a few months later will not do.
However, if you need better conditions in such cases, try to renegotiate the extra fees charged. In a financing, for example, you can propose something in relation to insurance.
And when it comes to recent debt, the term may vary. Car, house or apartment services require at least three months for you to negotiate, since it is only after that period that interest is charged for late payment, which leads to an increase in the interest rate.
Participate in the renegotiation actively and stay tuned for every step of the process.
When talking about check or credit card, you can not expect so much, because the interest is much higher and can exceed 10% per month. In this case, once the client realizes that he will not be able to afford the debt, it may be interesting to look for the lender.
6 – Do not accept any proposal
When negotiating debts with the bank, the client can be vulnerable, especially if he needs to clear the debt to complete another project. In this phase, it is common for a bank to present services that need to be contracted as a condition of acceptance of the proposal.
But, be aware that this practice is not allowed by the Consumer Defense Code, because it is a married sale. Do not accept any pressure at all, and seek a competent body if there is no possibility of agreement without the inclusion of these obligations.
If there is any threat from the bank, you can even ask for compensation.
7 – Think about the counterproposal of the bank
When presenting an alternative to the bank for negotiating your debt, be ready to listen to the counterproposal of the lender. Even if you need a solution, do not let anxiety take over, and take time to think before accepting any agreement.
Before you negotiate your debt with the bank, think carefully about the proposal.
Usually, the first proposal of the bank is usually not advantageous for the client. The benefits are rarely given in relation to values, which is really worthwhile, but over time.
Extending the debt gives a false sense of advantage, which is not true. The longer the debt, the higher the interest rates, even if rates are reduced.
So do not forget to analyze the counter-proposal from every angle: the total value, the interest rates and the deadlines. Compare what is offered with the original value and, mainly, study its conditions to remove this commitment.
8 – Ask for help in case of failure
If the bank does not accept a proposal that meets your conditions, you can go to some agencies for free. The PROCONs of several States usually broker free debt negotiations between the banks and their account holders.
To count on this help, you must be in the over-indebtedness condition. Therefore, you must already be owing. If you do not have this profile, the suggestion is to seek a lawyer to guide you.
However, this attitude can be taken at the beginning only in the sense of facilitating debt negotiation with the bank. A lawsuit, if any, should be enforced only if all of the above options have failed.
9 – Visit the fair
Periodically, credit protection agencies hold fairs with the objective of promoting negotiations on advantageous terms for both the creditor and the debtor. If you have debt to settle with the bank, this can be an excellent opportunity.
Since there is no fixed agenda for these events, you need to be aware of the dates of your city’s fair, so you do not lose them.
Generally, there, you get even more benefits than in an agreement at the agency itself. Even so, it is necessary to follow all the previous steps to achieve something really advantageous and possible to be removed.
10 – Take care of your financial health
After the negotiation, take care that the situation does not recur.
Once the debts are cleared, do not let the default days come back. Control your finances better and have a healthy relationship with money so you do not have to negotiate debts with the bank again.
A recurrence can make renegotiation even more difficult as the bank keeps track of each client. Although it can be considered an abusive practice, it can not be avoided.