What to Do About Rising Bills

Have you ever noticed your bills creeping up over time? Like when you first got that car insurance policy and were paying $150 a month, but now you’re paying $160 every month for the same policy even though your car is older and worth less money?

If this sounds familiar, you’re not alone. If you don’t pay attention, your auto-renewing bills, policies and subscriptions can rise in price without you even realizing it. But by being vigilant with your bills and addressing price increases when they happen, you can help save yourself some serious money in the long run.

Here are some tips for battling back against rising bills:

Shop around. If you’ve gotten comfortable with a current provider, but are paying more than you’re used to, it may be time to evaluate other lower-cost options. The truth is, you have choices when it comes to many of your bills. Unless you’re locked into a contract, you have the option to change things like your cell phone, television, and insurance providers. Taking some time to review other competitive offers can help you understand if you’re currently overpaying, and can give you a sense of how much money you could potentially save by switching to a new provider.

Some tips for comparison shopping:

• Do some digging to reveal the lowest-cost cell phone plans available to you.
• Consider whether cable TV, satellite TV, or video streaming is a better fit for your television needs.
• Get quotes from a few different car insurance and home insurance providers to see how their policies stack up against what you’re currently paying. Keep in mind that many insurance companies offer discounts for bundling your home and auto insurance as well.

A good rule of thumb is to get at least three different quotes or plan estimates to see if switching providers makes sense for you.

Negotiate your rates. Once you’ve done your homework and have researched what competitors are charging for similar services, you’re ready to try and haggle your bill down with your current provider. While it can be uncomfortable for some people to negotiate their bills down, the important thing to remember is that it never hurts to ask. With so much competition out there, there’s a good chance that you could be successful in your quest for a rate decrease. For many companies, it’s less expensive for them to retain an existing customer than it is for them to acquire a new one, so many service providers are open to negotiating with you. Just remember to be nice. If you’re screaming at a customer service representative or being disrespectful, the likelihood of them wanting to work with you will take a serious nosedive.

How to negotiate a bill:

• Let your service provider know upfront that you’re unhappy with the cost of your current service and that you’re thinking of canceling. You may even want to explicitly ask to be transferred to their cancellation or retention department. If they know you’re serious about leaving, they’re more likely to do everything they can to keep you as a customer.
• Inform them of the quotes or offers you received from their competitors. It doesn’t hurt to ask outright if they can meet or beat those deals.
• If they’re unable to give you the same rate a competitor is offering, but you’re still invested in staying with the company, you may want to see if there are any specific discounts, or plan modifications that can be made to bring your rate down. You could also ask if there are any short-term or one-time discounts they could give you for being a loyal customer.
• Ultimately, if your current provider won’t work with you, and you have in fact found better deals elsewhere, it’s okay to actually cancel and switch to a new provider. Don’t be afraid to follow through in order to get your bill down to an amount you’re more comfortable with.

Don’t forget your utility bills. You may not think of your electricity or gas bill as being negotiable, but in some ways they can be:

• Some states like Massachusetts and Rhode Island have “energy choice” options available to consumers. In Massachusetts for example, electricity consumers can use the EnergySwitchMA.gov website to shop around for a competitive supplier and a potentially lower electricity rate. Rhode Island offers its residents a similar choice of electricity suppliers via EmpowerRI at https://www.ri.gov/app/dpuc/empowerri.
• Depending on your utility provider, there may be an option to regulate your monthly bill to avoid huge cost spikes from seasonal usage. Rather than face dauntingly high bills in the winter and summer months due to heating and cooling your home, you can check with your utility providers to see if they offer balanced billing to spread your annual energy costs over 12 equal monthly payments. National Grid offers this type of budget billing for its Rhode Island electric and natural gas customers, and for its Massachusetts electric and Massachusetts gas customers.
• Another way to help reduce your utility bills is by implementing energy efficient upgrades. Both Rhode Island and Massachusetts offer free home energy assessments for homeowners. These assessments can be a great way to identify which upgrades could save you money on heating, cooling, and electricity costs. And, certain qualifying upgrades may even be eligible for no-interest financing.

The bottom line is if you notice your bills creeping up, you by no means have to just sit back and let it happen. By paying attention to your bills every month and taking action when you’re no longer happy with the cost of your service, you can save some big bucks and walk away with a real sense of satisfaction.