Yes, You Can (And Should) Negotiate Your Bills

April 18, 2023

When I was a kid, my dad used to tell me that, “as long as you can handle the word ‘no,’ then there’s no harm in asking.” I then proceeded to terrorize my parents by asking them for everything under the sun. And while teaching me how to ask for what I want and gracefully accept rejection may have caused them some major annoyance, I do believe it’s shaped good habits for me as an adult. Learning at a young age that everything is negotiable caused me to always take a closer look at the ways I spend my money. I always ask for discounts and negotiate bills where some people may not think to do so. 

There are plenty of bills in life that we assume are fixed costs. But sometimes they have more wiggle room than we might think. Asking for discounts is not only a great way to save some money each month, but to also advocate for yourself and to practice the important skill of negotiation. Here are a few expenses that you may not have thought to negotiate, as well as tips for negotiating some of those bills.

Bills You Can Negotiate

Keep in mind that even if you only save a tiny amount, this can really add up over time. Negotiation is always worth it, even if you don’t get what you want – the practice is valuable. 

1. Student Loans

Unfortunately, unless you’ve found a way to time travel (if you have, let me know- I’d love to go back and reverse a few terrible haircuts…), it can be impossible to negotiate how much you owe on your student loans. However, you can save some money in the long run by negotiating a lower interest rate.

Some lenders offer discounts for setting up automatic payments of up to .5%. It’s totally worth it to call up your provider and ask if they offer this perk! 

If you’re working to get your career into full swing and struggling to meet your student loan payments, you can also often work with your loan provider to come to an agreement to provide some temporary relief. Often, you can negotiate a forbearance or a deferment if you explain your circumstances. 

In a few cases, it may also make sense to refinance your student loans. You might be able to receive a lower interest rate and a lower monthly payment. However, it is imperative that you do your own research before taking the plunge. If you have federal student loans, it almost never makes sense to refinance into private student loans, as you will forego your loan forgiveness options. So be sure not to jump into refinancing without fully considering its effects. 

Related posts and helpful info:

2. Credit Card Negotiation

While we would always prefer you don’t carry credit card debt, we understand that people begin their personal finance journeys at different starting points. So, if you need some help managing your credit card debt, it’s possible to negotiate a settlement with your credit card company. Sometimes, if you offer them an amount lower than you owe, they’ll accept it and call it square. 

Be aware that this could cause your credit score to drop. So be sure to ask if they will report settlements to the credit bureaus. And, you could even end up owing tax on the amount forgiven! Definitely do your research and talk extensively with your credit card company before you go through with this. 

Another great way you can negotiate with your credit card companies is to ask for your annual fee to be waived. Especially if you have a travel or rewards card. Sometimes the fees associated with those cards can be pretty hefty. So it certainly can’t hurt to call them up and ask for the fee to be waived for a year. How often they say Yes will surprise you! The might even throw in some cash back or point incentives if you threaten to cancel your account.

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3. Negotiate Your Rent 

Rent is another huge expense that can often be negotiated in your life. Landlords want good, responsible tenants who pay on time. If that sounds like you, you may have some leverage when it comes to how much you pay each and every month!

The best way to succeed in getting a discount on your rent is to offer your landlord something in return. For example, if you’re willing to sign a longer lease, they might be inclined to offer you a rent lock or a discount. Depending on if you’re working with a mom and pop landlord, you could also offer to take on some responsibilities around the property, like mowing the lawn or gardening in exchange for lower rent. 

Remember that even if you can’t get a discount on your rent, you can also negotiate for other perks. Things like parking spaces, newer amenities, and lower fees or deposits. These extra perks can go a long way in making you feel like you’re getting the most for your money.

Here are some resources to help:

4. Car Loans

While we would prefer you buy your car with cash and avoid taking out a car loan, if you’ve already financed a car and are suffering from financial hardship, you can likely get relief from major loan providers. 

If your loan has a high interest rate, you may also be able to refinance to get a lower rate. While we do want you out of debt as soon as possible, in some circumstances it could make sense to extend the life of your loan to lower your payments now.

5. Medical Bills 

We’ve all been in and out of the doctor’s office in 30 seconds flat then been shocked to receive a sky high medical bill months later. The good news is that medical bills are some of the easiest and most important expenses to negotiate. 

Ask the hospital or doctor’s office for an itemized list of services and ensure that no mistakes were made. If everything is accurate, try asking to speak to a patient advocate. This is someone who specializes in helping patients manage their medical bills, and they should be able to help you find out if you qualify for any relief.

More resources:

6. Housing Costs

Even in a competitive housing market, you can still negotiate your housing costs if you’re looking to purchase a home. One of the best ways to save is to get a good real estate agent who will go to bat for you when negotiating the cost of your new crib.

Here are some other tips for things to negotiate, over and above the purchase price:

  • Interest rates: You should get at least 3-4 quotes from mortgage brokers. This act alone can save you tens of thousands of dollars! Also, ask about rate buy-downs which might make sense. If you put more money down, will that lower your rate and save money long term?
  • Closing costs are usually negotiable. Ask for a detailed list of closing costs, then see if you can DIY any of those services. Common items like “$300 for a mobile notary service”… Honestly, you can get a contract notarized yourself for maybe $40. Or sometimes FREE at the bank!
  • Inspections, surveys, insurance… Anything you buy during escrow is usually negotiable, or you might have the power to find your own cheaper vendors.
  • Repairs or cash back at closing!  Once you are under contract to purchase, go through the inspection with great scrutiny and ask the current owner to fix anything little you find. Or, tell them to give you some “cash back” at closing to make repairs.

If purchasing a home is on the horizon for you, be sure to check out our post on how to develop a home buying strategy.

7. Cable, TV, & Internet Bills

Unfortunately, your cable and internet providers likely don’t provide you discounts for being loyal. That’s why it’s important to ask for discounts, or consider switching companies every year or two.

You can contact your provider and ask to speak with someone from the customer retention department. Sometimes, they’ll be willing to give you a new customer offer!

Related: Here are the best cheap mobile carriers!

Tips to Negotiate Your Bills Successfully:

While it is possible to negotiate your bills, it isn’t necessarily always easy. Negotiation is a skill that needs to be learned and practiced, and you’ll get better at it with time. Here are a few tips for successfully snagging that discount on your expenses.

1. Do Your Research

The worst thing you could do is enter a negotiation under prepared. It’s important to do your research before asking for a discount or trying to negotiate your bills.

For example, if you’re looking to refinance, it’s important to get multiple quotes from different lenders to use as leverage. It’s also important to know what’s available on the market before you ask for a discount. Make sure your request is reasonable. For example, don’t ask for cable service at $1 each month if you can’t find anything else on the market for cheaper than $50. 

Related: Some of these deal websites have price comparison features so you can research prices on things. More applicable to online purchases, but it;’s definitely a handy research tool for negotiating with retailers!

2. Be persistent 

We’ve all had a meltdown when we’ve been trying to get in touch with a real human at a company, only to continuously be connected to unhelpful robots. If you’re struggling to get connected to a person, you could try checking Get Human. They give you the specific phone numbers for actual people at companies so that you can get in touch with someone who can help you.

And, if at first you don’t succeed, call and call again! If you happen to get a less than helpful representative on the phone, don’t be afraid to try calling back and talk to someone new. It’s possible that you could have been connected to the wrong department which may not be able to fully assist you. If you have a few extra minutes it’s worth a shot!

3. Ask For The “Customer Retention” Department

Did you know that some companies have entire departments dedicated to retaining customers? It’s called the customer retention department (makes sense, right!?), and sometimes they can give you discounts and promotions that regular customer service reps might not be able to offer.

Just be aware that you might need to tell the first person you reach that you plan to cancel your services in order to get transferred to customer retention. 

4. Try Alternative Methods of Contact 

Another way you can try and negotiate your bills is by utilizing alternative methods of contacting the company. If you’re short on time, online chats on the company website can be a great way to talk to a representative without having to wait forever on hold. If you get the answer you were hoping for, be sure to take a screenshot of the chat to make sure they honor their word. 

You can also try and get in touch with certain companies through their direct messages on social media websites, like Twitter or Facebook. Large businesses often have entire teams responsible for connecting with their customers via direct messages.

5. Don’t Lose Your Cool 

When’s the last time someone was a jerk to you and it made you want to help them out?

The truth is, losing your cool when you don’t get your way never made anything any better. No one wants to help out the full grown man or woman throwing a temper tantrum in the middle of the Verizon store. If the customer support person you’re talking to isn’t able to help you out, stay calm and consider speaking to someone else or switching service providers.  

At the end of the day, customer service representatives are just people, and they’re only trying to do their jobs. Treating them with respect and dignity, and connecting with them on a personal level will get you much further than being argumentative. 

6. Be Willing To Walk Away 

While this doesn’t always apply, when it comes to industries with healthy competition, be ready to take your business elsewhere if you’re unable to come to an agreement with a service provider you’re attempting to negotiate with. 

Although sticking with a company you’ve been with for a while is the easiest thing to do, if there are better offers out there, you shouldn’t be afraid to take advantage of them! Typically, switching service providers isn’t as big of an inconvenience as we might anticipate, and the savings are worth it!

Sometimes, it may not even be worth it to negotiate if you know you can get better results from switching companies. For example, if you’re paying $100 a month for your phone service, it’s probably not worth it to negotiate for a lower rate when you could switch to Mint Mobile and pay only $15 each month. That’s the easy button! Knowing what options are available can help you to decide if it makes more sense to negotiate, or to take your business elsewhere. 

The Bottom Line: 

Even though it may feel uncomfortable at first, you should attempt to negotiate your bills with regularity. It can save you a considerable amount of money each month, which can have a meaningful impact on your quality of life. But most of all, it’s a way to advocate for yourself. 

Businesses exist to make money. So if you don’t ask for a discount, no one else will do it for you. If you simply accept the price at the bottom of each bill, you’re probably leaving money on the table! 

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Beer tasting notes:

While talking about bills you can negotiate, we enjoyed a Tampa Timeshare Grapefruit-Basil Gose by Wrecking Bar Brewpub. It’s one of our favorite local breweries. And as we’ve ramped up the podcast with an additional Friday episode every week, we could really use your help. Please spread the word- let friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular. And give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to spread the word to get more people doing smart things with their money in these difficult times!

Best friends out!

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