Managing your personal finances can be tricky and tedious. In fact, it’s often difficult to even know where to start. We’ll let you in on a little secret: Start now, and start by reducing financial waste. One of the more lucrative solutions could be cutting down on monthly bills that you’re already paying.
There are several common bills that likely come out of your account each month without a second thought. These might include your rent and mortgage payments, phone and internet bills, insurance, streaming services, and more. Some of these bills can be successfully negotiated. In the long run, they could save you hundreds or even thousands of dollars.
Negotiating your bills offers both short term and long term relief. A little less money will be withdrawn from your bank account each month, freeing up those funds for other immediate expenses.
Negotiating your bills also helps you save a larger amount of money over a longer period of time. Reallocate that money to help you achieve longer term financial goals, such as saving, investing, or paying down debt. It could also help you pay off other bills faster and in turn boost your credit score.
When negotiating, your bank, credit card issuer, or biller might say no — don’t get discouraged. It’s part of the process. Sometimes you will succeed, sometimes you will fail, and sometimes you will have to meet someone halfway.
If you don’t succeed, move on to the next bill negotiation or keep trying with a new representative. As a consumer, you have a lot more to gain that your provider has to lose. Recognize your power in the situation (respectfully, of course).
Before you start negotiating, it’s important to prepare. Scan the past three months of your bank statements and credit card bills. Make a list of all of your monthly expenses. Some types of bills may be negotiable, others may be more difficult.
It’s possible that you will need to research comparable services in your area. You can use competitive offerings as a leverage point in your negotiation. Work your way through your list, starting with the common negotiable bills listed below, and start reducing your financial waste.
You can start by negotiating your interest rates. Most credit cards have variable interest rates, meaning they fluctuate based on an ever-changing index. Credit card issuers can increase or decrease rates as long as they give you notice. However, you can also ask for a rate decrease yourself.
As a result of COVID-19, many credit card issuers are also willing to work with customers who are experiencing financial hardship. If you find yourself struggling to make your monthly payments, call your issuer and be transparent about your situation. It helps if you have had an account with the issuer for a while and have a positive payment history.
Negotiating a landline or cell phone bill may be slightly easier than negotiating a credit card interest rate. When you signed up for your phone plan, you may have opted into a feature that is no longer worth the cost. You can cut down on your phone bill in a number of ways. For instance, you can work out a payment plan, add a line, or modify your insurance policy.
You can try to negotiate your internet bill in a manner similar to your phone bill. Many internet providers currently offer modified plans or reduced rates. You may be eligible for these plans if you are experiencing financial hardship due to COVID-19. Providers may also help if you have children at home who need an internet connection for remote schooling.
Similar to your phone and internet bills, you can try reducing your cable bill by leveraging competitive offers in your area. Your needs are constantly changing, so it’s common for people to negotiate their cable bills. Today, many companies and online streaming services provide access to your favorite TV shows and movies. If your current cable provider won’t negotiate, you can likely find another provider with a lower rate and similar offerings.
Student loan payments are tough to get around. However, you may be able to negotiate a settlement if your loans are near default. The Board of Education may also accommodate if you don’t have the financial means to pay off your debt.
Settlements are issued sparingly, so you should not bank on one. For a more stable solution, consider lowering your monthly payment or doing a balance transfer to reduce interest.
If you have outstanding medical debt, there are several potential ways to reduce the cost. First, you should check your medical bills for errors. Even medical billing departments make mistakes.
If you are insured or partially insured, confirm that all bills covered by your insurance are billed to your insurance provider. Previous medical expenses can also be covered if you’ve recently become a recipient of state-provided insurance; contact the state health department to inquire about this process.
Negotiating with your bank, credit card issuer, or biller can be awkward and intimidating. With a little research and a lot of practice, you’ll build confidence. You may be surprised at how much reducing waste can improve your finances. Remember to be polite, yet persistent. If you hear “no”, don’t get discouraged. It’s important that you keep trying, whether you continue negotiating the same bill or move on to the next.
Cushion helps you waste less money, save more, and live a financially healthier life. We monitor your bank and credit card accounts 24/7, find and alert you about pesky fees, let you know which fees are negotiable, which banks are cooperative, and can even automatically negotiate on your behalf.* To date, Cushion has secured customers more than $11 million in bank and credit card fee refunds—and we’re just getting started.
*Cushion only negotiates fees with high refund odds. We cannot guarantee any negotiations, a regular frequency of negotiations, or fee refunds—your bank makes the final call.