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At several times during the year, but particularly at the first of the year, I review and, if possible, renegotiate my contracts with, for example, internet.
I've done this several times, and it's a simple matter of making a few phone calls.
Credit Cards
Even though I pay my credit cards in full each month, I like to have low interest rates. So, from time to time, I'll call the credit card company and ask if there's a lower rate for my particular card. Many times, they'll answer that they have a special promo rate, and it's several points lower. BE CAREFUL, though, because these "promo rates" count on the possibility that you will be late on a payment, in which case the contract allows them to raise your rate to some ridiculous usury type interest rate.
I also won't pay an annual fee - and if they propose one, I call and tell them I'll switch cards. They always manage to find a way to waive the annual fee.
My Chase Bank Explorer card, for example, lets me rack up air miles on United, and there are ways to double or quadruple the points you get on purchases. Currently, my wife and I have two first class round trip tickets in the wings (get it? wings? air travel?
)
So WHY do I care about the interest rate if I pay in full each month? Because of the next thing - home and car insurance....
Home and Car Insurance
Many of us check insurance rates for cars and homes, then just "let it ride". When you get your renewal notice, it's time to check with other companies and get competing quotes. VERY IMPORTANT, though, that you let your current provider know you are comparing rates. I just tell them, "I like you guys, so I'm letting you bid, as well". It's amazing how they can find "discounts" to apply to your policy that might offset competitor pricing.
Check into a higher deductible. It's not always as big a difference as it used to be, but you can often save some considerable money by having a higher deductible. Most people won't do that because they're afraid they won't have the cash when an accident or claim happens. That's why you have the low interest credit card. You can pay the deductible on your credit card, and work to pay it off as soon as you can. Note, of course, that if you take too long to pay it off, you'll end up paying as much, if not more, in interest than you saved in premium.s
This would also be a good time to ask about the umbrella policy Sparko has addressed elsewhere. Many times, you can get $1M of insurance for really cheap, as a rider to your policy.
Cable TV / Satellite TV
I have called DirecTV before, suggesting I'm considering changing, and asking for the cancellation department. That gets you to a "customer retention specialist" who will try to talk you into staying, and many times will offer a 6 month or 12 month decrease in your monthly bill to keep you. Be sure to ask about early termination costs if you accept this deal, then change your mind, and make good notes on your conversation. If you do accept the decrease, put the expiry date on your calendar so you can call them again when your rate goes back up after the discount period.
Internet
I periodically call my internet provider and express concern that their rate is too high. Many times, they'll either increase my bandwidth for the same price, or offer a "promo rate" for 6 months or a year, similar to DirecTV above. Out where I live, my only other option (other than AT&T) is satellite internet, which is awful. Wild Blue and DirecWay (or whoever they are now) offer horrendous plans that provide very low volume of data, except for "unlimited" between the hours of midnight and 5 AM or something, and throttle you way down if you exceed a certain thresshold, or worse - charge you extra.
Cell Phones
I have one of the very RARE "unlimited data" plans from AT&T, and they're constantly and aggressively trying to get me to switch to one of their "shared data" plans. It's looking like "unlimited data" is becoming more scarce, with most of the providers (at least in my area) wanting to nudge you to "family shares 15 Gigs" or something like that. When I do anything related to my cell phone plan - like upgrading my wife's phone - they try their best to get me to "upgrade" my plan.
I also had negotiated a generous company discount when I was with the gas compression company, and was told by AT&T that when I left that company, I could keep my plan for as long as I continued paying for it. I did, recently, get a notice that my monthly unlimited plan was going up by $5.00 a month, but it still beats their "shared plans". By switching my "grandfathered plan", I would lose unlimited data forever.
HOWEVER, walking into a local AT&T store, and actually talking to a person, I'm surprised by how helpful they are in analyzing my usage pattern, and telling me, "wow, you're better with the plan you have, even though I'm supposed to talk you into ...." A little kindness goes a long way here. Many times, you can get them "off script" just by being nice and asking for their help.
Tires
I've shared my experience elsewhere with Discount Tire. The price they advertise is not necessarily the price you have to pay. I'm amazed at how many people just agree to pay "the going rate". Also, there is often a "warranty tread remainder" on your old tires, and you need to ask about that. Even THAT is negotiable. They'll tell me, "well, your tires still have X amount of tread on them, and that's good for xxxxxxx miles you've driven, but you should have gotten x+, so there's an allowance of $yy toward the purchase of new tires". I'll often suggest that the tires are in really good shape, and I could continue driving on them for another couple months, and they'll often sweeten the deal. Suddenly the "allowance" is $yy+.
Then the NEW tires.... They'll display their proposal on the monitor, and the bottom line might be $773 "drive out" with the warranty trade amount, and I'll start off by pointing out that I don't need their "certificates" for tire replacement at $25 each (adds an additional $100 to the price). They try to tell me how valuable that is, and I'll tell them "I've bought over 50 tires from you in my life, and I've only ever had to have ONE of them replaced due to sidewall puncture, so that ONE tire replacement would have cost me $1,250". They deduct the "certificates", and we're down to $658.
I'll point to the "bottom line" and say "I need that number to be Six Hundred Even, and I'll buy the tires. Most recently, the guy looked puzzled, and he pointed to the line items, and asked "which line do you want me to change?" I told him "I don't care - I just need the bottom number to be $600 even". It WORKS!!!
I'm a Scotsman, what can I say?
I've done this several times, and it's a simple matter of making a few phone calls.
Credit Cards
Even though I pay my credit cards in full each month, I like to have low interest rates. So, from time to time, I'll call the credit card company and ask if there's a lower rate for my particular card. Many times, they'll answer that they have a special promo rate, and it's several points lower. BE CAREFUL, though, because these "promo rates" count on the possibility that you will be late on a payment, in which case the contract allows them to raise your rate to some ridiculous usury type interest rate.
I also won't pay an annual fee - and if they propose one, I call and tell them I'll switch cards. They always manage to find a way to waive the annual fee.
My Chase Bank Explorer card, for example, lets me rack up air miles on United, and there are ways to double or quadruple the points you get on purchases. Currently, my wife and I have two first class round trip tickets in the wings (get it? wings? air travel?
)So WHY do I care about the interest rate if I pay in full each month? Because of the next thing - home and car insurance....
Home and Car Insurance
Many of us check insurance rates for cars and homes, then just "let it ride". When you get your renewal notice, it's time to check with other companies and get competing quotes. VERY IMPORTANT, though, that you let your current provider know you are comparing rates. I just tell them, "I like you guys, so I'm letting you bid, as well". It's amazing how they can find "discounts" to apply to your policy that might offset competitor pricing.
Check into a higher deductible. It's not always as big a difference as it used to be, but you can often save some considerable money by having a higher deductible. Most people won't do that because they're afraid they won't have the cash when an accident or claim happens. That's why you have the low interest credit card. You can pay the deductible on your credit card, and work to pay it off as soon as you can. Note, of course, that if you take too long to pay it off, you'll end up paying as much, if not more, in interest than you saved in premium.s
This would also be a good time to ask about the umbrella policy Sparko has addressed elsewhere. Many times, you can get $1M of insurance for really cheap, as a rider to your policy.
Cable TV / Satellite TV
I have called DirecTV before, suggesting I'm considering changing, and asking for the cancellation department. That gets you to a "customer retention specialist" who will try to talk you into staying, and many times will offer a 6 month or 12 month decrease in your monthly bill to keep you. Be sure to ask about early termination costs if you accept this deal, then change your mind, and make good notes on your conversation. If you do accept the decrease, put the expiry date on your calendar so you can call them again when your rate goes back up after the discount period.
Internet
I periodically call my internet provider and express concern that their rate is too high. Many times, they'll either increase my bandwidth for the same price, or offer a "promo rate" for 6 months or a year, similar to DirecTV above. Out where I live, my only other option (other than AT&T) is satellite internet, which is awful. Wild Blue and DirecWay (or whoever they are now) offer horrendous plans that provide very low volume of data, except for "unlimited" between the hours of midnight and 5 AM or something, and throttle you way down if you exceed a certain thresshold, or worse - charge you extra.
Cell Phones
I have one of the very RARE "unlimited data" plans from AT&T, and they're constantly and aggressively trying to get me to switch to one of their "shared data" plans. It's looking like "unlimited data" is becoming more scarce, with most of the providers (at least in my area) wanting to nudge you to "family shares 15 Gigs" or something like that. When I do anything related to my cell phone plan - like upgrading my wife's phone - they try their best to get me to "upgrade" my plan.
I also had negotiated a generous company discount when I was with the gas compression company, and was told by AT&T that when I left that company, I could keep my plan for as long as I continued paying for it. I did, recently, get a notice that my monthly unlimited plan was going up by $5.00 a month, but it still beats their "shared plans". By switching my "grandfathered plan", I would lose unlimited data forever.
HOWEVER, walking into a local AT&T store, and actually talking to a person, I'm surprised by how helpful they are in analyzing my usage pattern, and telling me, "wow, you're better with the plan you have, even though I'm supposed to talk you into ...." A little kindness goes a long way here. Many times, you can get them "off script" just by being nice and asking for their help.
Tires
I've shared my experience elsewhere with Discount Tire. The price they advertise is not necessarily the price you have to pay. I'm amazed at how many people just agree to pay "the going rate". Also, there is often a "warranty tread remainder" on your old tires, and you need to ask about that. Even THAT is negotiable. They'll tell me, "well, your tires still have X amount of tread on them, and that's good for xxxxxxx miles you've driven, but you should have gotten x+, so there's an allowance of $yy toward the purchase of new tires". I'll often suggest that the tires are in really good shape, and I could continue driving on them for another couple months, and they'll often sweeten the deal. Suddenly the "allowance" is $yy+.
Then the NEW tires.... They'll display their proposal on the monitor, and the bottom line might be $773 "drive out" with the warranty trade amount, and I'll start off by pointing out that I don't need their "certificates" for tire replacement at $25 each (adds an additional $100 to the price). They try to tell me how valuable that is, and I'll tell them "I've bought over 50 tires from you in my life, and I've only ever had to have ONE of them replaced due to sidewall puncture, so that ONE tire replacement would have cost me $1,250". They deduct the "certificates", and we're down to $658.
I'll point to the "bottom line" and say "I need that number to be Six Hundred Even, and I'll buy the tires. Most recently, the guy looked puzzled, and he pointed to the line items, and asked "which line do you want me to change?" I told him "I don't care - I just need the bottom number to be $600 even".
It WORKS!!!I'm a Scotsman, what can I say?
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