Five Ways to Bargain your Way out of Debt

03-Feb-2010

It's time we started using our consumer clout!  Put your negotiation skills to good use, and start demanding better deals - you could save hundreds each month.  Remember, a smile works wonders even when you're negotiating over the phone.

Lower your Credit Card interest rate

Call up your credit card providers (use the free number that you'll usually find on the back of the card, or go on to saynoto0870.com for free versions of premium-rate numbers).   Ask them if they could check to see if you qualify for a lower interest rate - there is no harm in asking, and the representative might move you straight away, especially if you are usually on time with your repayments and generally on good terms with your card provider.  

If the representative is not prepared to lower your rate, mention that you have seen a lower interest rate with another card provider (it's worth doing some credit card comparison research first) and that you would like to transfer your balance over.  Rather than losing you as a customer, they may then be persuaded to match this other rate or at least offer you something more competitive.    

Get a new, improved mobile phone tariff

Coming to the end of your mobile phone contract?  Now is the prime time to get a great deal.  Mobile phone companies know how much you are worth to them over a lifetime, so they will do what they can to hang on to your business.  First, check your phone bills from the last six months.  Then ask yourself the following questions: How many minutes and texts do I use on average each month? Where are the additional charges coming from? Which handset would I want to upgrade to?  

Then, work out which package would suit you best and how much you can actually afford to pay each month.  Again, shop around to see what other mobile phone networks are offering.  Phone up your provider and tell them that you have found a better deal elsewhere and would like to move.  Give them the tariff and pricing details that you would like to move to, and they will more than likely match these for you.  Try and avoid getting tied into an 18-month contract (this will usually be the trade-off for getting the best deals), because this means you're an awfully long time away from the next chance to improve your deal.

Pay less for your Protection

Insurance providers are extremely competitive, and so when you are approaching your insurance renewal date, this is a great opportunity to lower the monthly cost of your car insurance or home insurance.   Call up your provider and explain that you have found a much better deal with someone else, and that you are therefore planning to switch,  Give them the details of the offer you have found elsewhere and ask them to match it or improve upon it.  

It's important to remember that you need to keep a high level of cover - there's no point switching to a cheaper deal that doesn't actually protect you, and always read the small print, however boring a task it might sound!  If you ensure your car and your home with the same insurance provider, ask if you can get a discount for renewing the two insurance types at the same time.  This is particularly effective if you have previously used separate providers, because you're proposing to give one company twice as much business.

Bundle Up

Getting your television, broadband and landline telephone through the same provider could save you money.  It often works out cheaper for the providers to work in this way, because it cuts down installation time and administration, and the savings get passed on to the customers.  Plus, you should consider that it is a big win for a provider to get triple the amount of business out of one customer, so don't be afraid to ask for additional discounts.

Do your research, read reviews and find out what the connection is like in your local area.  Don't necessarily opt for the cheapest package, because it might not actually give you the best service. Even if you save a smaller amount each month by switching and have an excellent service, this is better than saving a fortune but having a dodgy service! Also, consider the quality of the provider's customer support - will someone come out quickly if you have issues, and will you be charged for any repairs? Bundles are not always the best deal, so do be prepared to shop around - and remember, you are also perfectly entitled to bargain with individual suppliers, they want your business just as much!

Negotiating with your bank

If you usually avoid bank charges, but you have exceeded your overdraft limit one month, get straight on the phone and explain the situation.  Be polite and apologetic and don't get angry - even though the bank charges can be high, they are all outlined in the information you got when you signed up to that account so you did originally agree to them.   Usually if the circumstances can be explained, and you do not make a habit of going over your limit, they will agree to waive the charges.