9 Bills You're Overpaying, According to Ramit Sethi
Most people assume their monthly bills are fixed. Your credit card interest rate is what it is. Your rent increase is non-negotiable. Your internet provider sets the price and you simply pay it.
But, according to personal finance expert Ramit Sethi, that mindset could be costing you hundreds or even thousands of dollars every year.
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In a recent YouTube video, Sethi broke down nine bills that many people overpay and explained how a few simple conversations can save you money.
Credit Card APR
Many card issuers would actually rather lower your interest rate than lose you as a customer. So if you haven’t already, call your credit card provider and ask if they could lower your rates or offer a permanent reduction. If you’re able to drop your APR by a few percentage points, you could potentially save hundreds of dollars every year.
Medical Bills
Medical bills are negotiable, too.
“Medical pricing is opaque, which means you do not know how much it's going to be and it is often completely arbitrary. Different patients get charged different amounts for the exact same procedure,” he explained. “And here's the thing you may not have heard about. Hospitals have entire financial assistance departments whose job it is to reduce what you owe. But they're not gonna call you up and volunteer that information, you have to ask.”
So make sure to always request an itemized bill and review every charge carefully. You can also ask about financial assistance programs, cash-pay discounts and payment plans.
Rent
Sethi argued that good tenants have more leverage than they realize when it comes to negotiating rent and he says that he’s personally negotiated rent many times in New York City.
He suggested that you research comparable rentals in your area before your lease renews. And if local rents have softened and you've been a reliable tenant, you can use that information to negotiate a lower rent with your landlord.
Student Loans
Federal student loan borrowers often overlook repayment options that could lower their monthly payments. Income-driven repayment plans, deferment, forbearance and forgiveness programs can all provide some sort of relief depending on your situation. If you have private loans, refinancing could potentially lower your interest rate and reduce the total cost of borrowing.
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Phone and Internet Bills
“Your phone and internet companies are in constant price wars with each other. And their number one priority is acquiring new customers and ideally retaining them. That means that you have leverage to get discounts as an existing customer, so they don't lose you to a competitor,” Sethi said.
And many of these companies have promotions running all the time, but they’re never going to offer them to you unless you ask. So, always review competitor offers and contact your provider at least once a year to ask if loyalty discounts and free upgrades are available.
Car Insurance
Don’t let your car insurance policies renew without comparing rates. Like all your other bills, make sure to shop around every year and gather quotes from multiple insurers. Then, show those quotes to your current provider and ask them to match or beat the competing offer.
Bank Fees
Overdraft fees and account maintenance fees can add up to hundreds of dollars each year. If you're hit with a fee, pick up the phone and ask for it to be waived. Many banks are actually willing to reverse fees, especially if you've been a good customer or don't have a history of overdrawing your account.
Gym Memberships
Gym memberships are notorious for making it difficult to cancel your membership, which is one reason many people keep paying for them long after they've stopped going regularly. If your monthly rate has gone up or you're not getting enough value from your membership, try negotiating and seeing if there are promotional rates available for existing members. Many gyms would rather offer a discount than lose a paying customer.
Streaming Services and Subscriptions
Take inventory of every streaming service, app and subscription you're paying for. Keep the ones you genuinely use and cancel the rest. Then, once you know the subscriptions you want to keep, call your provider or click the cancel button online and you will often see steep discounts. “These companies have actually automated it,” Sethi said. “So if you want to cancel, they will often offer something like two months free if you just click stay.”
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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