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.

You might also enjoy:

  • 5 Simple Ways to Meal Plan and Cut Your Grocery Budget in Half!
  • Ways to Save on Electricity Costs
  • 50 Simple Ways to Save $5
The Secret to Lowering Your Monthly Bills (2024)

FAQs

The Secret to Lowering Your Monthly Bills? ›

These are expenses that fluctuate, like groceries, clothing, gas and utility bills. There are plenty of ways to make them shrink. Use coupons, buy stuff on sale, eat out less, buy food in bulk, shop around for better deals on phone and streaming services.

How do I decrease my monthly bills? ›

Here are some simple ideas to try:
  1. Unplug appliances — toasters, cell phone chargers, computers — when you're not using them.
  2. Clean or replace your heating, ventilation, and air-conditioning (HVAC) filter monthly for maximum efficiency.

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? ›

How to negotiate lower bills
  • Say upfront that you're considering canceling your service and ask to be transferred to the customer retention or cancellations department. ...
  • If you're not happy with the rep's offer, mention your customer history: “I've been a customer for [X years] and I've never missed a payment.
Sep 22, 2023

What is the best way to organize monthly bills? ›

8 Ways to Organize Your Bills
  1. Setting Up a Bill-Paying Station. ...
  2. Making a Master List of Monthly Bills. ...
  3. Using Automatic Payments When Appropriate. ...
  4. Putting a Bill Paying System in Place. ...
  5. Keeping Good Records. ...
  6. Designating a Family Bookkeeper. ...
  7. Using Budgeting Tools/Apps. ...
  8. Using the Cash Envelope Method.

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).

How to drastically cut costs? ›

How to Reduce Expenses and Save Money
  1. Start Tracking Your Spending Habits. ...
  2. Get on a Budget. ...
  3. Cancel Unnecessary or Unused Subscriptions. ...
  4. Reduce Electricity Use. ...
  5. Prioritize Sustainability. ...
  6. Reduce Your Housing Expenses. ...
  7. Consolidate Your Debt and Lower Interest Rates. ...
  8. Reduce Your Insurance Premiums.
Jun 20, 2024

Can you live off $1000 a month after bills? ›

The Takeaway

Making your budget work when you have $1,000 in monthly income is possible, though it might take some serious work. Drastically reducing expenses can be a great place to start, and bringing in more income can of course help too. Changing banks is one more money-saving tip to know.

How to budget $4000 a month? ›

How To Budget Using the 50/30/20 Rule
  1. 50% for mandatory expenses = $2,000 (0.50 X 4,000 = $2,000)
  2. 30% for wants and discretionary spending = $1,200 (0.30 X 4,000 = $1,200)
  3. 20% for savings and debt repayment = $800 (0.20 X 4,000 = $800)
Oct 26, 2023

How to budget $5000 a month? ›

If you bring home $5,000 after-tax each month, according to the rule you'd split your income as follows:
  1. $2,500: 50% of your income, is allocated towards necessities — rent, utilities and groceries.
  2. $1,500: 30% of your income, is allocated towards things you want, whether it's the latest iPhone or a fresh outfit.

What to do if your bills are too high? ›

If you have too many bills relative to your income, here are some potential solutions.
  1. Review Your Spending (and Create a Budget) ...
  2. Reach Out to a Reputable Nonprofit Credit Counseling Agency. ...
  3. Speak with Your Creditors. ...
  4. Contact Charitable Organizations in Your Area. ...
  5. Apply for Government Benefits.
May 16, 2022

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.

How can I get my bills down? ›

How to save on water, gas and electricity
  1. Choose paperless billing.
  2. Pay by direct debit.
  3. Use a smart meter.
  4. If you've got older appliances, upgrading to more energy efficient ones could save you money in the long term.
  5. Shower instead of having a bath.
  6. Wash at lower temperatures and use eco cycles to cut your water bill.
Dec 12, 2023

How do you declutter bills? ›

Write the due date of each bill on the outside of the envelope and stack them in order of when they need to be paid. Set aside a time every week to go through the bin of bills and pay them. As you do this, it's a good idea to find a place to file your paid bills.

What is the best strategy to pay your bills every month? ›

One approach is to pay as many bills as possible automatically. You can typically set up automated payments through your bank or credit union or directly through your creditors. For example, you can enroll in auto bill pay from your Credit Karma Money™ Spend account.

What to do when you don't have enough money to pay your bills? ›

Contact the people you owe.

Call first and talk to someone in the customer service department. Stress your interest in paying off the debt and ask about options. Remember, most companies have no more desire to lose a customer than you do to avoid your bills. The key is communication.

How do I lower my monthly payment? ›

How To Lower Your Mortgage Payment
  1. Refinance With A Lower Interest Rate. A lower interest rate can mean big savings. ...
  2. Get Rid Of Mortgage Insurance. ...
  3. Extend The Term Of Your Mortgage. ...
  4. Shop Around For Lower Homeowners Insurance Rates. ...
  5. Appeal Your Property Taxes.

What is one way you could decrease monthly expenses? ›

Pay off Your Debts. Getting out of debt is a no-brainer if you want to reduce expenses and save money. This is especially true of credit card debt, which typically carries much higher interest rates than conventional loans. Money spent on interest is money unavailable for other necessary expenses.

How can monthly debt payments be reduced? ›

By extending your repayment period, you could lower your monthly instalments so that you can meet your financial obligations. Restructures are available on home loans and vehicle finance.

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