Saving Money
Negotiating Lower Bills: Call These Companies First
A few uncomfortable phone calls can save you hundreds of dollars a year on bills you're already paying. Here's exactly where to start.
Most people assume their bills are fixed. They're not. A huge number of recurring charges are negotiable, and companies count on you never asking. The mild awkwardness of a ten-minute call is one of the best-paying activities in personal finance.
Call these companies first
- Internet and cable providers — the easiest wins. Promo rates expire and they'll quietly let you pay more. Ask what's available.
- Cell phone carriers — plans and competitor deals change constantly; you may be overpaying for data you don't use.
- Insurance (auto, home, renters) — rates drift up; re-shopping and asking for discounts can cut them fast.
- Credit card issuers — you can ask for a lower APR or to waive an annual fee, especially with a good payment history.
- Medical bills — often negotiable, with discounts for paying promptly or in cash.
What to actually say
Keep it simple and friendly: "I've been a customer for a while, my bill has gone up, and I'm looking at my options. What promotions or discounts can you offer to keep my business?" Then go quiet and let them work. Silence does a lot of the negotiating for you.
The magic words: "What can you do to lower my bill?" followed by patient silence. Reps often have retention offers they only mention when you ask and wait.
Use competitors as leverage
Know what the competition charges before you call. "Your competitor is offering this rate" is powerful, especially with internet and phone providers who desperately want to keep you. Be willing to actually switch — the leverage only works if it's real.
Ask for the retention department
Front-line reps often can't approve the best deals. Politely mentioning you're considering canceling usually routes you to retention, where the real offers live. Stay calm and pleasant — you're more likely to get a deal from someone who likes talking to you.
Don't get talked into more: Companies may "lower" your bill by bundling in services you don't need. Only accept a deal that actually reduces what you pay for what you already use.
Make it a routine
Set a reminder to review your major bills once a year. Promo rates expire on a schedule, so your savings should be on one too. Then take every dollar you save and put it to work — an extra debt payment or your emergency fund. A single afternoon of calls can fund months of progress.