Skip to main content

How to Negotiate Lower Monthly Bills in Retirement

By U.S. News & World Report

If you need your retirement income to stretch a bit further, you might be able to reduce your monthly bills. You can take steps to negotiate lower prices and ensure you are not being taken advantage of by your current service providers. Here are some tips and tricks that will help you control your retirement expenses.

Make productive complaints. Successful conflict resolution requires a friendly persona. When you have been wronged, being friendly is the last thing on your mind. But if you can curb your angry reaction, you can begin the process of resolution from a reasonable starting point. Many times, the individual who will help you work through your issue is not the person who wronged you. If you cannot speak rationally about the subject during your exchange, come back to the issue after you have calmed down.

[Read: 12 Ways Retirees Pay Their Bills.]

Collaborate with the customer service representative. Your goal is to persuade the company representative to be on your side. You might want to take the time to explain that your frustration or anger is due to the situation and is not directed toward the person on the phone. Instead of venting, aim to work together to find a solution.

Know what you want. Do not call or write a complaint email unless you know the result you are expecting. Complaint actions can be cathartic, but the exercise does not provide economic value unless you have a goal of what the resolution should be.

Be concise with written complaints. It is not uncommon for written complaints to turn into a rambling manifesto of what is wrong with the company. This mistake causes the complaint to be ineffective because it overwhelms the reader with complaining and buries the resolution you are asking for.

Document everything. Filing a complaint may turn out to be a multi-step process. It will benefit you if you record the date, time and person you spoke to on each interaction. It also adds weight to your complaint if you can provide specific facts when you follow up.

Watch for price creep. Some industries provide lower rates to new clients. Phone, TV and internet companies as well as home and automobile insurance providers frequently offer promotional rates to new customers. Since most existing consumers will take the path of least resistance and allow their services to automatically renew, there is an incentive for providers to increase prices over time. When your bill increases, take a look at what competitors are charging. You might be able to lower your rate with just a few simple phone calls — especially if you are getting mailers from your service provider’s competitors.

[See: 10 Costs You Can Eliminate in Retirement.]

Get price quotes from competitors. Check out what other providers in your area are charging new clients or use a website like AllConnect.com to look at new customer pricing for a variety of services. Many providers will match new customer pricing for existing customers who are willing to take the proactive step of calling to request the deal.

Consider bundling your services. Utility providers might charge you a lower rate when you use them for multiple services including TV, internet and mobile phone. The same is true for insurance providers. It may make sense to work with a single insurance provider to activate additional discounts on your home, auto and umbrella coverage.

Shop for new insurance providers. This will require a bit of homework and preparation, but the savings opportunities can be big. Track down and review your homeowner and automobile insurance coverage. Take a look at the summary page that describes the deductibles, coverage limits and what the policy covers. You can use this data to price and compare your current service provider to others.

[See: 10 Tax Breaks for People Over 50.]

Look for discounts. If you are part of a trade organization or affiliated with the military you could qualify for special access or discounts. People over a specific age might also be eligible for senior discounts.

You will be better able to live comfortably on a fixed income if you stay active and engaged with your personal finances. These simple tools and tips can help you keep more money in your pocket.

Brian Preston and Bo Hanson are fee-only financial planners who host the podcast, “The Money-Guy Show“.

More from U.S. News

10 Ways to Get Ready for Retirement After Age 50

The Top Travel Destinations for Retirees

7 Tips to Live Well on Social Security Alone

How to Negotiate Lower Monthly Bills in Retirement originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote