Blog

Slash Your Bills And Save Money

By Debt.ca on January 18, 2013 No Comments

Cutting spending is one of the first steps to taking control of your finances and getting out of debt. But there are always bills that seem necessary and we don’t really think about reducing them.

Today we’re going to talk about the 3 R’s for how to negotiate discounts on your bills. Remember that every dollar you save on your bills is a dollar that can go towards debt repayment.

You remember the 3R’s of recycling, right? Reduce, Re-use, Recycle. With bills the R’s are going to be a bit different, but the idea is the same.

Before getting to the R’s, you need to know where you stand. List all of your bills including utilities, insurance, cable, cell phones, internet, subscriptions (both physical like magazines and gym memberships, and digital like online newspapers and services like dropbox or evernote). Also include your debts.

R #1 – Remove

No sense knocking 20% off a bill when you can eliminate it entirely. Take a hard look at each bill and ask if you can live without it. Is there a free alternative you could be using? Get rid of what you can and keep track of how much you’ll save every month.

R #2 – Reduce

Now it’s time to get your hands dirty. Go through all your bills again and highlight ones where you could reasonably ask for a discount. This includes anything non-essential like cell phones, cable, gym memberships and other services, as well as anything where you could potentially go to a competitor such as with insurance and loans.

Do your research before you call. If you’re paying $60 a month for cable, find out what their competitor charges. Often just asking for a discount will work, but you have to be prepared to tell them you’re willing to leave.

With credit cards you can ask for a lower interest rate, telling them you were offered a chance to do a balance transfer to another card. Given the choice between getting a bit less in interest and none at all, they should allow you to reduce the amount you’re paying.

In general the first person you speak with won’t be able to help you. You need to speak to someone in the client retention department. These are the people who have at least some power to reduce your bill or offer additional services. Their job is to keep you happy, so tell them what they have to do to make that happen.

Remember to be polite and helpful. Coming across as a jerk who’s trying to rip them off won’t get you very far. They’re people too, and they deal with more jerks than happy people. Help their day out a bit and ask nicely for what you’d like.

R #3 – Replace

If you tell your cable provider that their competitor has a better deal and they won’t do anything for you, then exercise your right to switch and replace them as your provider. Sometimes actually asking to cancel your service will be enough to get you the discount you want, but you HAVE to be prepared to actually leave.

Do The Math

After you’ve gone through each bill, add up what you’re saving. If you’ve removed a few bills completely, reduced a couple, and replaced others with cheaper alternatives, you should have a nice chunk of money every month you didn’t before. Now use it properly and throw it down on your next debt!

Debt.ca

Admin


Having the Money Talk with Your Romantic Partner

By Rubina Ahmed-Haq on March 16, 2017

Money is one of the major reasons couples fight.  A study out of Utah State University found that couples who fight frequently about money are more likely to get divorced. That’s compared to any other issue they might fight about, child rearing, their love life and household chores (as an example.) Before your relationship moves to…

How to Save on Heating Costs, Even as a Renter

By Jordann Brown on March 9, 2017

One of the best ways to free up room in your budget to pay down debt is to trim your expenses. There are plenty of ways to trim your budget, but one often overlooked method is to reduce your utility costs. Home heating makes up 42% of your home’s overall energy use, and drain your…

5 Tax Breaks You May Not Know About

By Alyssa Davies on March 2, 2017

We’re getting closer to the time of year when the Canada Revenue Agency awaits your annual income reports. From there, they will determine whether or not you are income tax receivable or income tax payable. What’s the difference, you ask? Income tax payable means that you must pay the government within one year, and income…

10 Personal Finance Bloggers Share Their Best Money Advice

By Alyssa Davies on February 20, 2017

Every financial situation is unique and unlike others experiences, which is why every piece of information you can absorb during debt repayment will help. I know, I know, you’re tired of hearing the same old instruction from the same old places. So instead, we decided to see what others (who have been through similar circumstances)…

No Comments Leave a Comment  

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000
Live Chat
Welcome to our Live Chat
Agents are not available at this time. Please leave a message. Thank you.
First Name
Last Name
Phone
Email
Postal Code
Debt Amount
 
PHP Live! powered