If you owe any amount to a lender, it is your obligation to make repayments on a regular basis. There could be a required amount of debt payment on a monthly basis. However, there could be instances when you fall behind your payment schedules. Worse, you may find it impossible to make any repayment for a month or two.
Incurring late payment charges should be avoided. That is because the penalty could be significant enough to make your debt larger. You may end up putting up an additional amount to your current debt. It could make your outstanding debt costlier especially if many other charges may be incurred as a result.
Are you aware that you could possibly negotiate with your lender to waive your late payment fees? It is possible so there is no sense in hesitating to even try. As you aim to do so, check the following tips that could serve as your guidance.
- Review your billing statement. You could determine if late payment fees have already been imposed and how much the amount of penalty is. Once you receive this billing or any form of letter or communication regarding the late payment charge, immediately contact your lender.
- DonÃ¢â‚¬â„¢t wait for too long before you approach your bank regarding the penalty. Usually, a lender sends notices after a month of delayed payment. DonÃ¢â‚¬â„¢t wait for up to three months before you make any move. By that time, the bank may have already started the process of default. Also, you may incur greater and more charges other than the late payment fee.
- Be open and honest when discussing your current financial situation to your bank. Contrary to your first impression, banks are usually considerate about their clientsÃ¢â‚¬â„¢ and borrowersÃ¢â‚¬â„¢ financial woes. If you could prove that your claims are accurate and truthful, you may obtain their generous consideration. This way, you may not only negotiate to eliminate your late payment fee; you could also possibly get a loan modification or restructuring so you could take some time to get back on your normal finances before you re-assume debt payment.
- Propose a workable solution to your debt problem. If you could not pay what you owe instantly, at least, explore possible options on how you could make regular repayments without hurting your monthly budget. You may ask for a loan term extension or for a much lower monthly repayment requirement. Your bank would appreciate your intention to repay your financial obligation; thus, it may give in to your request for waived late payment charges.Ã‚Â
- Have the resolution not to make late payments again. If you succeed in negotiating for a waived late payment fee this time, you may have a harder time next time. Prove to your lender that you are serious in repaying your debt completely, no matter how long it may take. Always ensure prompt payments so as not to incur any penalty or late payment charge.
Andrew enjoys writing about personal finance and tips to better spend or save money. Over the last 4 years, Andrew has contributed to numerous blogs. From finding the mostÃ‚Â competitive short term loan to saving money on bank fees and interest rate, Andrew has written hundreds of articles and helped many people on how to improve their finance.