Keep Cool, Calm and Connected with your Bank Manager!

Professionals and bank managers alike cannot recall a crisis of this scale, consequently they lack experience in managing such distress. Recently, the majority of my counselling has been for couples and business owners who are having difficulty meeting their loan repayments. If this includes you, here’s an effective plan, but you’ll need to take urgent action to minimise the chances of becoming victim to the current crisis. Whenever our financial life isn’t going smoothly, it can be tempting to focus on anything other than bills and overdue loan repayments. However, denying these problems only means that they can quickly spiral out of control, devastating your financial position ... and your health!

By implementing this plan, you can be sure to keep cool, calm and connected with your bank manager at all times -

Avoid the Spiral
Start discussions with your bank about your situation before your loan repayments are overdue. This allows maximum time to form a solution and move forward. It also demonstrates that you’re honest and proactive regarding your finances.

Be Informed
Effective decisions can be only based on facts, so make sure you’re up-to-date with your personal financial information and the finances of your business. Give yourself, and the bank, an accurate picture of the situation - it may look better once you’ve viewed the big picture.

Create a Plan
Be clever and create a brief plan to show the bank that you don’t have to rely totally upon them to do the work. No doubt your bank manager will suggest a way to move forward, but preparing a plan means that you can both discuss what action needs to be taken. Your plan should include the details of realistic loan repayments and when they’ll be made. Try to clearly demonstrate how your loans will be paid over the short and long term.

Keep Your Commitments
The bank manager will feel more comfortable when he/she sees that you’re committed to repaying loans and managing your finances. This reduces the chance of the bank taking negative action against you. By meeting your agreed payments and making small additional repayments, whenever possible, you show the bank that you’re committed and doing everything to keep your finances in order.

Reflect Responsibility
Ensure you send requested information promptly to your bank manager and follow up with a courtesy call. Let them know of anything not included, and when it will be sent, to avoid any concern regarding your reliability. Should unforeseen circumstances arise where you cannot send information, or make payments, be responsible and call the bank. You need to eliminate any chance of inaccurate assumptions.

Communicate Regularly
Communication is the key to forming good rapport with your bank. You’ll benefit immensely from building a relationship - especially during times of uncertainty. Keep in touch with them every fortnight or so to let them know how you’re going and if things are progressing. Outline any goal milestones such as payments made above the normal rate, which costs have been reduced and any extra income received. Approach your bank in a friendly and professional manner and try to remember they are just doing their job.

Support & Assistance
I understand how daunting it can be meeting with your bank manager under these circumstances. It takes a lot of courage and effort to remain cool and calm when we feel everything is falling apart. My advice is to seek a trained Counsellor, or person you trust who is aware of your situation, and invite them along to your first appointment. As outsiders they would have the ability to be assertive, ask questions and contribute positively during discussions. They might also provide a voice of reason keeping the meeting co-operative and productive; rigorously preventing a negative environment of accusations and threats.

A Counsellor can be a valuable aid – a person who assists you to understand and get through difficult financial periods. However, you have to be willing to invest your time and re-focus your priorities. In return for this investment, you’ll gain years of wisdom and protection for your hard-earned assets – ensuring you’re in a position to survive in the present and thrive in the future.