The Secret to Lowering Your Monthly Bills (2024)

Did you know that the price you are paying every month for services like cable, internet, cell phones, and other subscription plans might be too much? It could take a simple phone call to get your bills reduced and help you save more money.

My friend Mike has been doing this for years andwhen he shared his strategy with me a few weeks ago I told him I had to share it with my readers.

Think you don’t have time to make the calls? Mike has been keeping track of this for five years and figures his hourly wage for these phone calls is almost $200!I’d make a few phone calls for $200 and hour, wouldn’t you?

Below is the “script” he uses when he calls to get his bills lowered.
If you are like me, then you make 1 or 2 phone calls per month with various companies to get your bills reduced, fixed, or cancelled.

I want to give you a simple yet unconventional approach that has nearly always worked for me over the years. This script is so good it even got my wife a brand new iPhone after she dropped it and had no Apple Care (Apple is notoriously stingy on credits to customers).

Step one is utilizing gethuman.com or the gethuman appto figure out the most efficient way to get the right customer service representative (CSR) as quickly as possible. Gethuman is the machete that slices your way through the phone tree. Also, make sure you have your account number handy and that you are an “authorized user” on the account.

Step two is going to the right department. If the goal of my call is to get my bill slashed, credited, reduced, or cancelled then I always go to the CSRs in the “retention department.”

Sometimes you have to say things like “cancel my service” in order to get to this department. The reason I go to this department is because in nearly all call centers this department has the authorization to give you the best credits, deals, freebies, or other incentives to retainyour business.

Step three is rapport and attitude. No matter how upset you are, you need to shelve it and be very likable. Imagine having a job where people are upset with you all day and how nice it is when someone interrupts that pattern with an empathetic mindset.

Smile while you are talking to them. Ask them for their name and address them by their name. Find one thing that you can connect with them about during the duration of your call.

Step four is finding three things to compliment their company, product, or business. If you are immediately irate and launch into your complaint than the CSR is likely going to think that there is a low probability of retaining you as a customer.

However, start by building up their company or product with three specific things that you have enjoyed about their brand. This softens the blow of step five while still having the CSR lean towards you being most likely retain-able.

Step five is communicate your complaint, frustration, or desire to cut costs. Be specific about the core issues that you have. Recall that you have already built up the company, their brand, their product… etc. in step four – this gives you the right to say that they haven’t measured up to their own standards.

The CSR will be more inclined to agree with your complaints because you’ve already built up the company, brand, product, or experience. The magic phrase here is that “I am really disappointed with company name here and I expect better and I know you are capable of it.”

A helpful phrase to soften your complaint is, “I know this isn’t your fault and I am not upset with you, BUT…”

Note: If you have an actual tech support issue, retention will not be able to help you, but may be able to compensate you – but this will have to either be a phone transfer or a separate phone call.

Step six is be quiet and listen. The first rule of negotiation is that whomever speaks first… loses. Wait for the CSR to respond. Usually the CSR will respond with two or three things:

  1. An explanation of a policy that may have led to the bad service
  2. A quasi-sincere apology on behalf of the company
  3. An offer of some sort of refund, rebate, freebie, hidden/secret offer, one-time credit.

Step seven is actual negotiation. Sometimes CSRs will ask you what you want, try as best you can to lob the ball back into their court with something like, “I really don’t know, whatever is typical or customary for a circ*mstance like mine.”

Then wait and listen for their offer. If the offer is no good, then you can always say that it isn’t agreeable or acceptable to you and you can negotiate for more. However, if you spoke first, you will never get anything better offer than what you throw out there.
If all of these steps have failed, then there is the optional step eight.

Optional – Step eight is either asking to “escalate the phone call” or to hang up and start with step one with a different retention CSR.

Good luck with your calls. I keep a spreadsheet of my call logs to make sure that they are worth my time. My running five year average is $196/hour in credits, rebates, and/or other incentives.

I don’t make that in my job so these phone calls are still worth my time. The key is being able to get to the right human quickly, be winsome and efficient on the phone, and sticking to the script.

You can find Mikeon the web at MichaelSGraham.com and Mike & Sara Graham Photography.

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The Secret to Lowering Your Monthly Bills (2024)

FAQs

The Secret to Lowering Your Monthly Bills? ›

Canceling those unused services will save you money each month. If there's a service that provides just a couple shows you enjoy, consider binging them, then canceling the service. Also take advantage of free trials to watch what you want in that time period, without committing to the expense.

How do I decrease my monthly bills? ›

Here are 10 ways you can lower your bills:
  1. Negotiate your bills.
  2. Switch to a fixed pricing plan.
  3. Downgrade service.
  4. Use efficient appliances.
  5. Rotate services.
  6. Refinance loans.
  7. Use a balance transfer card.
  8. Bundle products.
Mar 17, 2023

What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

What to say to get your bills lowered? ›

Otherwise, say something like: “Thanks, but the problem isn't that I don't have enough to watch, it's that my monthly bill is too high. What can you do to lower my bill?” You can often get free ancillary services in addition to a lower monthly bill.

What is one way you could decrease monthly expenses? ›

Consolidate Your Debt and Lower Interest Rates. One way to drastically cut expenses is to consolidate debt. If you have credit cards, those monthly payments could be eating up a big portion of your take-home pay. Check out the interest payments on the cards – likely it's between 16% and 30%.

How much should all your bills be a month? ›

50% of your net income should go towards living expenses and essentials (Needs), 20% of your net income should go towards debt reduction and savings (Debt Reduction and Savings), and 30% of your net income should go towards discretionary spending (Wants).

What is considered unnecessary spending? ›

Unnecessary spending usually goes something like this: you go to the store for a new toothbrush, but you end up leaving with a shopping cart full of items you never intended to buy. You're out $100, but at least you can brush your teeth tonight.

Is $4000 a good savings? ›

Ready to talk to an expert? Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.

How to budget $5000 a month? ›

Consider an individual who takes home $5,000 a month. Applying the 50/30/20 rule would give them a monthly budget of: 50% for mandatory expenses = $2,500. 20% to savings and debt repayment = $1,000.

How to budget $4000 a month? ›

making $4,000 a month using the 75 10 15 method. 75% goes towards your needs, so use $3,000 towards housing bills, transport, and groceries. 10% goes towards want. So $400 to spend on dining out, entertainment, and hobbies.

Can you negotiate monthly bills? ›

One way to lower your monthly bill is to hop on the phone to negotiate with service providers. By calling them up directly, you might be able to cut fees and lower your subscription costs.

What to do if your bills are too high? ›

Consider a Personal Loan

If you have debt you're looking to pay off, consider consolidating your debt with a personal loan. You will have the chance to receive fixed interest rates and one set regular monthly payment that never changes.

How can I save money if my bills are too high? ›

How to pay your bills and still save money
  1. Put a cap on non-essentials. ...
  2. Consolidate, or at least snowball, your debt. ...
  3. Don't use your balance as permission to spend. ...
  4. Don't base your spending on other people. ...
  5. Follow a budget that works. ...
  6. Downgrade.
Feb 9, 2017

How to convince yourself to save money? ›

Set a small, achievable short-term goal for something that's fun and goes beyond your monthly budget, such as a new smartphone or holiday gifts. Reaching smaller goals—and enjoying the reward you've saved for—can give you a psychological boost, making the payoff of saving more immediate and reinforces the habit.

How to be cheap? ›

  1. Admit that you need a budget. There's no way around this. ...
  2. Search for deals and discounts. Coupons and sales are always on the radar for frugal people. ...
  3. Rethink your meals. ...
  4. Keep your home clean for a cheap. ...
  5. Don't be fooled by “Get Rich Quick” schemes. ...
  6. Use every drop wisely. ...
  7. Purchase used items. ...
  8. Do-it-yourself (DIY).
Aug 22, 2023

Which is not something you should look for in a savings account? ›

The feature you should NOT look for in a savings account is rewards for using your debit card, as savings accounts are designed to encourage saving money, not spending.

How to save money when bills are too high? ›

How to pay your bills and still save money
  1. Put a cap on non-essentials. ...
  2. Consolidate, or at least snowball, your debt. ...
  3. Don't use your balance as permission to spend. ...
  4. Don't base your spending on other people. ...
  5. Follow a budget that works. ...
  6. Downgrade.
Feb 9, 2017

What to do when bills are more than income? ›

What to Do When You Can't Pay Your Bills
  1. Cover your Four Walls. ...
  2. Create a budget. ...
  3. Cut any unnecessary spending. ...
  4. Stop taking out debt. ...
  5. Watch out for debt scams. ...
  6. Plan ways to increase your income. ...
  7. Contact your lenders. ...
  8. Give your creditors their fair share.
Apr 2, 2024

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