if i pay off my loan i will be penalized... my loan is $8000 including the penalization fee...however, do you think if i negotiate with the loan company and say i have only $6500 do you think the loan company will accept my $6500 and close my account??? or do you think i'll be turned down?
2007-03-28 07:24:36 · 4 answers · asked by rache0116 3 in Business & Finance ➔ Credit
Most companies will not negotiate on a debt unless you're working with a collection agency. Give them a call and see if you pay the $6500 in full up front will they waive all or part of the penalty. More than likely they won't because charging a penalty is how many companies stay in business. The longer you keep the loan the more money they get from you.
2007-03-28 08:09:26 · answer #1 · answered by Pisces Princess 6 · 0⤊ 0⤋
I doubt the loan company will negotiate that much of a difference. If they did, they would be losing money on not only you, but everyone else (you know other people would want to do the same thing!) As for being penalized, look into your loan documents you signed. Sometimes there is a fee for paying off early, but sometimes there's not. You can always call your loan officer about it too.
You can always try, and if it doesn't work, pay what you can. The more you pay, the less interest you have to pay later :)
2007-03-28 07:34:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
well, it all depends on the company. if you have the funds to pay it off, but there is a prepayment penalty, why not stick that money in a savings account, and gain interest and just pay it off at normal pace to avoid the penalty?
I think if you got a settlement for a smaller amount, it would show up on your credit as "settled with creditor for lessor amount" I do not know how much that hurts your scores.
2007-03-28 07:34:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's possible. They may want the whole $6500 at once. Give it a shot
2007-03-28 07:28:24 · answer #4 · answered by biscuitperifrank 5 · 0⤊ 0⤋