Negotiate For Lower Interest Rate While You Pay Off Your Debt
Paying off your debt takes a lot of hard work and discipline. It usually entails a couple of months of endurance, stringent budgeting, and an approach of frugality. It’s not an enjoying experience that is why the people in Canada want to break free from their big appetite on debt.
Moreover, if you’re not fond of the approach to adopting a frugal living while knocking down your debt, you have to find ways of paying off your debt faster.
Additionally, there are a lot of ways to speed your debt payment faster. This is possible when you negotiate for lower interest rates. By doing so, you’ll be paying less amount to your creditors and will be paying more on your debt principal.
Steps To Negotiate For Lower Interest Rate
When negotiating for lower interest charges, you have to equip yourself and prepare on how you can initiate a good negotiation. In this guide, you will learn the five useful steps to make your negotiation success.
Step 1: Do Research and Gather Information
The primary step in initiating a successful negotiation to lower your interest rate is to do some research and gather information pertaining to the competing lenders.
This means you need to check the competitors and options available to the forms of debt that you acquires such as credit card debt. line of credit and the others. Besides, you can call the other providers and find out if they are lowering your credit card interest rates that your current provider.
It’s critical not to make them initiate a hard inquiry or hit on your credit score, since though these are just inquiries, it will still impact your credit temporarily.
What you can do is ask for the preliminary rates. If you find the rates favorable, you can request for more detailed information to be sent via mail.
Step 2: Negotiate Before You Pay Off Debt
After you’re equipped with the information that you need, you should know how much should be a just interest rate for your debt. You can use the information you’ve gathered and ask to lower your rate for a few percentages. Make sure that you have a number in mind and be prepared to negotiate.
Step 3: Begin With Your Oldest Credit Card
You can leverage your dedication to your institution by negotiating to lower your interest rates for your oldest credit card first. You can stress out the duration that you’ve been with them and let them know you just wanted to make sure that you’re able to manage your debt reason why you’re negotiating for a lower rate.
Step 4: Make the Call
When making the call to negotiate for a lower rate, make sure that you make the most of it. Thoroughly explain your financial situation and be honest. You can point out that you’re a customer for several years. Well, as a customer, you must also establish rapport with your institution which can be visible with your previous records.
Step 5: Make a Follow Through
When negotiation won’t work, you can try calling some other time as other representatives might be more willing to extend their help. In cases, where your rate is reduced but not as low as you expect, you can ouch a bit more and follow through on your threat to move to the competitor. Also, you should as well understand if your debt comes with a compound interest.
