Consumers have more power over their finances than they realize. Especially in the billing department.
If people can successfully negotiate with medical providers, are there other bills that might be subject to a reduction? We corralled some consumer savings experts to find out and, as it turns out, there are plenty.
Just look at this list of possibilities: Cable, cell phone, and internet plans; credit cards; and insurance.
Credit cards
“Studies show that about 76% of people who ask for a lower interest rate on their credit cards get one, and many of those rates drop by 10% or more,” says Matt Schulz, personal finance expert and author at Ask Questions, Save Money.
“Ask open-ended questions to make it harder for them to say no. Asking "Who may I speak with about lowering my rate?" instead of ‘Can I get a lower rate?’ means that the person on the other line can't simply say no. It doesn't mean that you'll get your way, but it does help avoid the representative short-circuiting the conversation before it begins,” he said.
And if you’ve had the card for a while and have been good about paying things off, then your chances go up.
You can say, "I've had your card for X years and have never missed a payment. I like the card, but I currently have a 26% rate on it and I saw online that some people are offered a 21% rate. Who may I speak with on your team about lowering my rate? Given my track record, I think it is a reasonable request,” Schulz suggests.
If the credit card company refuses you, don’t give up. Andrea Woroch, a consumer finance expert, says you should consider a balance transfer card to save more money.
“Balance transfer cards give you up to 21 months to pay off your debt without interest accruing, depending on the card's promotional offer. That means, your entire payment goes towards shrinking your actual debt so you get out of debt faster and save more money over time,” Woroch said.
If comparing rates on cards is of value, ConsumerAffairs has a complete guide to that.
Cable, internet, cell phone plans
There’s not a cable company, streaming service, or internet provider out there that wants to lose a customer. Once they produce programming or string some wires, most everything else is pure gravy, so don’t be shy.
Woroch says you should call your provider once a year to find out if you qualify for a new promotion. “Be polite and courteous as the person on the other line may be more willing to haggle! Ask about discounts for setting up e-billing, autopay or bundling services, too,” she said.
Zach Robbins, finance expert and founder at Loanfolk, says he’s learned two important tactics to consider when negotiating cable and internet bills.
“First, it's important to regularly check the rates offered by your current service provider and simply ask if it's still the best deal for your needs," he told ConsumerAffairs.
"Second, it's essential to check with their competitors to see what new customers offer and what rates they're providing. These tips can be applied to bills wherever there is solid competition, such as cell phone plans, cable subscriptions, and auto insurance policies, and, most importantly, it can work.
Speeding and parking tickets
Another expense that consumers can negotiate is speeding tickets or parking tickets.
“These tickets, much like the others, are going to require one to provide some pushback to either police or other city services. In my experience, these organizations do not expect others to negotiate so they may push back much like the other companies,” Sebastian Jania, director at Ontario Property Buyers, said.
Another trick is to ask for something like to a “mulligan.” Just ask the clerk that if you promise never to get a violation in their county again for the next three years, will they reduce the amount of the ticket? Again, no guarantees, but it doesn’t hurt to ask.
But, whatever you do, be nice and don’t waste time. To attempt to get your speeding ticket reduced, you should contact the court listed on the ticket itself.
The ticket will typically have information regarding the court's contact details, the date by which you must respond, and instructions on how to proceed if you wish to contest the ticket or seek a reduction in the fine or points assessed against your driving record.
Insurance
Lastly, one more bill that one can negotiate is your insurance. Jania says this insurance can be for your home, vehicle, or any other policy. “Because these insurance companies have their own profit margin, one is able to negotiate that spread,” he said.
You should also ask about bundling policies, increasing deductibles, and maximizing discounts for things like safety features, security systems, not having any claims or early policy renewal.
But, whatever you do…
Don’t be afraid. “Aside from credit card issuers, we have power when securing a mortgage, car loan, or student loan,” Schulz says.
“We even have it over utility companies, gyms, medical providers, and furniture stores. It’s all about asking and negotiating. Still, most people don’t ask, because asking is scary!"
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-02-02 16:49:03
