It’s not just better rates that you get from bargaining. It can produce big debt write offs. For many borrowers in family businesses or farms carrying big debt, the bank makes more out of the business than the owners. That is because the bank puts a lot of time and effort into making money out of its customers. Every business does that, but moneylenders do it better than most because they pay attention to every cent.
If you make the effort to manage your finances well, you will make the money too. It makes sense to live your life in a way that will make you at least moderately wealthy.
The BankBid service enables you to extract good interest rates from your bank and other banks. It is always prudent to bank with a number of banks. Then you can choose the best one for whatever you are doing, after playing one off against the other. This system for a modest fixed fee was started in 1987 as Moneygrams by a Chartered Accountant who specialised in debt issues after banks were deregulated. It has saved many bank customers a lot of money over the years.
Preparing good loan applications is another thing that consultancy does today. The royal commission has revealed that the standard “Tick the box” applications are not sufficient for the individual circumstances of each borrower to be properly assessed. For that reason borrowers can also retain a low cost debt consultant to coach them in managing their debt for the highest profit.
Once debt gets out of hand there are numerous good solutions. One of the best is to negotiate a settlement with the bank. There are many factors in negotiating these agreements but the most important one is to have bargaining chips up your sleeve. That is one reason why a good debt consultant with accounting qualifications and business/farming experience pays off.