Self Help Debt Negotiation
Author: admin
In debt? Lots? Did you know you are valuable to a lender? If you have a history of paying your debts, even if it is slowly, then to a lender you are valuable. That is because you pay interest on money they have lent. That interest is like their salaries and if you keep paying them, they keep getting paid.
In a way you are working for the lender, and as long as you pay regularly you do not cost them anything to have as an employee. Wow, what a great deal, for them. With this little knowledge your job is to go to 5-10 lenders and see what kind of deal you can negotiate. If you have some high interest credit cards it could be the most money you ever saved in your life. As likely your new lender will have a lot lower rates on the loan.
Gather up all your payments and write down; how much you owe each, the monthly payment, and the interest rate. Total up how much you owe and total monthly payment and the high and low interest rates. This is the info you need, to determine if you are getting a better deal from a new lender. Often one of your current lenders will cut you a much better deal if you tell them you will move to a new lender if they don’t.
Why would a lender do that? Well whatever the prime interest rate is federally is likely how much they pay for the money you have. As an example, lets say prime is 6% and your average interest rate you are paying on your loans is 20%. They are making a fortune off you. For them basically anything over 7% is still making them money. As they have very little work involved. It may be better than nothing, so they might cut you a better deal.
Remember, without borrowers there wouldn’t be any lenders. They need your business so make them earn it. Be smart, be wealthy.
Did you find those tips on debt management useful? You can learn a lot more about how debt management can help you reduce debt here.
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