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Even if you think you’ve adjusted to life amid a global pandemic (or you did until this week), there’s a good chance your finances might need a bit of extra focus. Whether you're struggling to make ends meet or just looking to save during these uncertain times, there could still be chances to reduce your biggest recurring bills.
A few weeks ago, we discussed this with personal finance expert Ramit Sethi during an episode of The Upgrade podcast. He pointed out five key spending categories that you can negotiate to lower your monthly expenses and free up some funds—whether it’s for an emergency savings account or immediate needs.
Let’s revisit Sethi’s five bills and explore ways you can handle each one. Then, I’ll throw in a sixth bill you should keep an eye on.
Remember, if you don’t ask for something, you won’t get it.
Mobile phone bill
Many wireless providers have rolled out customer assistance programs to help those struggling to pay their bills fully or on time. Some are also boosting data limits without extra charges, or eliminating fees for going over your data limit.
Make sure you’re aware of when any promotional offers you’ve taken advantage of will end so you don't end up with unexpected overage charges after going over your data limit while turning your home into a workplace or school. And while you’re reviewing, check your bill to confirm that you’re only being charged for services you actually use. You may find it worthwhile to adjust your service or even switch to a more cost-effective prepaid plan for long-term savings.
TV subscription bill
During stay-at-home periods, your cable and home internet may have felt like crucial services. These companies have also been offering flexible payment plans and, in some cases, extending service options without extra costs.
However, there’s a strong possibility that your cable or internet provider is still offering discounted rates to attract new customers, while charging you higher fees for similar services.
This happened to me not long ago—my internet bill spiked after a promotional offer ended. I managed to negotiate with the company to get the same new-customer price for a plan that included the same internet and home phone service. I don’t need a home phone line, but I’m more than happy to save $15 a month.
Credit card
Credit card forbearance programs are still available, so if you’re tight on funds, you can request that your issuer defer payments for a few months—though interest will continue to accumulate during this period.
While card issuers may be tightening their belts these days, they haven’t stopped operating entirely: You can still negotiate for a lower interest rate and explore zero-interest balance transfer offers. (Just keep in mind that a balance transfer fee of 3-5% will be added to your balance.)
Student loans
Federal student loans are automatically in forbearance, and interest won’t accrue until the fall. Private loan lenders are also providing assistance for borrowers who are struggling with payments. This could give you the opportunity to free up some funds from those payments to cover other costs.
If you expect your income to be lower for a while, you may be eligible to switch to an income-based repayment plan once your federal loan payments resume in October. You might also be able to switch to a different payment plan, regardless of your income, which could provide you with more cash now for any unexpected expenses.
Rent
Yes, even your rent is negotiable—especially during tough times. If you're struggling to pay your rent, you might be protected by an eviction moratorium in your area. It's best to reach out to your landlord or property manager as soon as you foresee trouble paying your rent in full or on time. You may be able to arrange to pay in installments or get your late fees waived.
Is your lease about to expire? Before automatically committing to another year, ask your landlord if you can renew without a rent increase, or better yet, negotiate a discount. This strategy is often successful if you're a reliable tenant who pays on time (when there isn't a pandemic), and it’s even more likely to work if you’re willing to take on extra chores like mowing the lawn or weeding the garden.
Although talking to your landlord might make you nervous, remember that it’s just business. Landlords usually prefer to keep an existing tenant because it’s cheaper and easier than finding a new one. Bringing in a new tenant means they have to repair the unit, advertise it, conduct tours, and screen potential renters.
Car insurance
Although Sethi didn’t mention this, I think it’s worth bringing up. During the pandemic, many car insurance companies started offering discounts and refunds to customers. As driving activity decreased in the spring due to stay-at-home orders, fewer accidents occurred, allowing insurers to pass on some of their savings to customers.
That’s an automatic discount, provided your insurer is offering one, but it’s not the only opportunity for savings. Consider how your driving habits may change in the coming months: Perhaps your workplace will continue with remote work, meaning you won't need to commute to the office daily. Updating this information with your insurer could lower your premium. Your mileage (yes, I said it) may vary, but it’s definitely worth comparing coverage based on how much driving you expect to do this summer and fall.
What else would you add to this list? If you’ve managed to negotiate any of your major expenses during these unusual times, we’d love to hear about it in the comments.
