How do you deal with financial services providers? Are you giving them too much of your money?
Here are a few examples where I have managed to give them less – where I have been able to go and spend the money saved on other stuff. (from lunch money to a car)
In dealing with financial services, people usually think that the rules are fixed. That is almost never the case.
a) Late fees by your financial services provider
Ever been late with a payment? Did you just pay the late fees? Bad mistake. The first time you are late, call them as soon as you find out. Just say this,” I am so sorry this has happened, can you please give me a second chance to make the payment? As you can tell, I have never been late before.”
The second time you can say,”It has only happened once before, can you please let me off the hook? I could use the extra money etc..”
This can go on for as many times as you need to. That is something your financial services provider can usually waive any number of times. Obviously, it depends on how late you are.
b) Can’t make the payment on time – or you would rather pay it later.
Call your financial services provider. Ask them for a delay. Advise that you are not in position to pay them now.
You always negotiate down. That means, first you ask for a lot. Then you start lowering your “ask”. So, ask for a month. The rep will not be happy with that. Negotiate to 3 weeks. Try to settle for 2 weeks.
Check this link out for more on negotiations : http://www.flyingsolo.com.au/marketing/sales-strategies/nine-tips-for-improving-negotiation-skills
c) Missed the first repayment.
Again, just call up and ask your financial services provider to remove the late fees. They probably will, considering it was the first time – see above for more details on this one.
d) Financial services reps are not monsters.
Whatever your requirements, always ask politely. No matter how absurd you think it sounds. We all have different upbringings. We all have different notions of what absurdity is. If yours is not the same as theirs, you have a chance.
Be polite, emphasize with whatever they are saying.. and courteously ask for a favour.
e) Interest rates can always be negotiated
Always call more than one financial services provider before you lock in your contract. Get 2 other rates and bid them against each other. You will always get a better rate.
f) Administration and other financial services fees
Always claim some kind of hardship and ask for these to be waived or reduced. Some of these fees, the rep may be able to remove without even talking to their managers. Many times I have been able to do this where they did not want to budget the interest rate.
g) Ask one open-ended question. This one:
“What else can you do for me?”
Followed by this one, if the rep is struggling:
“Is there any other discounts you can give me,” and start reciting the charges one by one. A few coins here and there .. and it adds up. I saved over $400 once, doing just this over a few minutes.
BIG DISCLAIMER – please always make sure they are not about to credit list you for non-payments. Your financial services provider has be aware of your circumstances. Communication is key here!!
Let me know how you go. . . Or if you have other tips to share!