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Fixed monthly expenses are the silent killers of any budget.
Many of these are services you signed up for five years ago and, if you’re lucky, you still use from time to time. But over the years, like every gym membership ever, our use dwindles to the point that paying full price no longer makes sense.
Here are 7 expenses you should renegotiate, or cancel, right now:
1. Auto Insurance
If you own a car, auto insurance is required by law. But if you haven’t shopped around for a new provider or gone to your existing one to ask for a lower rate, you’re paying more than you need to.
Rates have increased over the last few years due to higher repair costs on cars, accident claims, and inflation. While overall rates may be going up, you can lower your rate based on your behavior.
First, comparison shop your auto insurance policy to see what other providers may be offering you.
Next, call your insurer and ask for a rate review. There may be discounts you’re eligible for that aren’t included in your account, such as low mileage, safe driver discounts, and defensive driving courses.
By taking thirty minutes to review your costs, you could lower your rate which can save you hundreds each year going forward.
2. Medical Bills
Medical bills are the leading cause of bankruptcy in America and most Americans don’t know that you can negotiate them. In fact, hospitals and medical providers expect it because they’re battling daily with insurance companies.
Ask for an itemized bill and look for errors, which are common. Then, call the billing department and ask about prompt payment discounts, financial assistance, and a payment plan.
Find out about charity care programs, a form of hospital financial assistance, because nonprofit hospitals are required by law to provide these. If you need help navigating these programs, DollarFor is a nonprofit that helps consumers get these benefits for free.
3. Streaming Services
How many streaming services are you subscribed to? We have nearly half a dozen and can make a case for keeping each one, but should we?
If you’re in the same situation, do an audit of which services you use and cancel or downgrade the ones you use less. Cancel the ones that you don’t use on a weekly basis, you can always sign back up later.
When I went to cancel our Apple TV+ service, we were offered a discounted rate for two months. Their offer worked because we kept it an additional two months, watched everything we possibly wanted, and then cancelled. We will sign back up whenever our favorite shows return.
4. Internet & Cable Services
If you have multiple internet and cable provider options, you should be threatening to switch every time your contract expires. Much like auto insurance, you need to comparison shop for new customer offers, call your existing provider to demand a match, and switch if they decline.
If you don’t have multiple options, call your current provider to see if they have any discounts you miss. They may have a loyalty discount or ability to downgrade your plan for savings. You may not have an alternative, but the cable company doesn’t know that.
5. Credit Card Interest Rates
If you carry a balance on your credit cards, your annual percentage rate (APR) is something you can negotiate. Call your credit card company and ask if they can offer a temporary APR reduction or if you could get a lower promotional rate.
If not, you could always look for a 0% balance transfer offer. This is when you open a new credit card, transfer your balance for a fee (typically 3%), and then get a 0% interest rate for 12 to 18 months.
Credit card companies know you can do this so they may be willing to give you a lower temporary promotional rate to keep your business.