How to Negotiate Lower Bills

AAfter having a baby in August 2020, Loren Jerae and her partner realized that quitting their jobs to stay home with the baby would be more affordable than paying for daycare in a big city like Charlotte, North Carolina.

But the change was an adjustment. “We accepted a pay cut,” Jerae told TIME. “I stopped working and then we became a single-income family and from there we decided what ways can we cut back? In what ways can we save money?

Her mother recommended that she take a look at her bills and call several companies to ask if they would be willing to reduce them. It worked. It’s a tactic she now uses like clockwork every six months.

Although inflation shows signs of reduction, many Americans are feeling the impact of high prices. A survey of the Federal Reserve released in May found that two-thirds of Americans said rising prices had worsened their financial situation.

See more information: How to actually buy groceries right now

But there’s one area where many Americans could actually be paying any less: subscription accounts.

When it comes to services like streaming, internet, phone lines and WiFi, companies are reluctant to lose business to competitors and are often more than willing to cut customers some slack when it comes to pricing – as long as you know what ask.

“All these companies… really want your service. They’ll figure out some ways to sweeten the deal,” says Jerae, who posted a TikTok earlier this year, sharing his experiences trading his accounts. “A lot of people just don’t know [that] because they don’t want to spend 15 minutes calling.”

Here are some tips on how to reduce your monthly bills:

Take stock of your finances

Experts tell TIME that most people aren’t controlling their spending and budgeting. “Half of people aren’t even aware of the charges coming out of their checking accounts,” says Stephen Roth, financial planner at Limestone Financial Group.

A 2021 study of west monroe found that the average American spends $273 on subscriptions every month – but is less aware of how much they spend on subscriptions compared to years past.

Experts recommend that you take stock of the service you are paying for every six months and cancel what you no longer need. “A lot of the little charges add up,” adds Roth.

see more information: How to reset your thinking about spending money, according to experts

Pick up the phone

While many people may be phone averse, taking a few minutes to sit down and call your providers can yield big savings.

Know that it may take some time to connect with someone who can help you. If you mention that you want to change providers or cancel your subscription, the representative will transfer you to a customer retention department. “Typically, the first person who responds is not the right person,” says Michelle Gessner, financial planner at Gessner Wealth Strategies.

Once transferred, ask to speak to a manager. “A manager almost always has more discretion and more ability to issue credits and reduce your bill than a regular representative you contact for the first time,” says Gregory Guenther, financial planner at GRANTvest Financial Group.

What to say

There are a few strategies you can adopt when trying to reduce your bills.

Jerae usually just mentions that the bill is getting too high for her to pay. “I call them and say, I’ve been with you for X number of years. I love you. I love the service, however, just based on our bills, I am reworking my budget and simply can’t afford it anymore. What can you do?

She was successful on many occasions: Her phone bill was reduced from $110 to $87 for three lines – making one of the lines practically free. She also recently received a $10 discount on her internet bill and got a $1 promotional deal from Hulu when she mentioned that she was thinking about canceling her subscription.

And even when suppliers weren’t able to give her a cash discount, they helped her in other ways, she says. Once, when her phone provider couldn’t reduce her bill, they gave her a free Netflix subscription, saving her money on other expenses.

Be honest about your personal circumstances – whether it’s job loss or medical difficulties. “If you make a personal connection, especially when you have a decision maker on the phone, it encourages you to go the extra mile,” says Guenther.

Consider asking about specific offers you may be eligible for – students, military personnel, and veterans are often eligible for certain discounts. And, of course, mention that you want to switch providers. “They generally want to retain you as a customer,” says Roth. “So there is room for negotiation.”

While setting aside time to wait may seem like a chore at the moment, the savings have the potential to add up. “You have to take the bull by the horns when it comes to this,” says Roth. “Because if you don’t do that, you’re going to get ripped off by all these companies.”